wing tai holdings limited · g2000 is for living, working, flirting and succeeding. reflecting the latest fashion trends in europe, with quality fabrics at affordable prices. “The

annual report

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Newer Heights, Bolder Strides

singaPoRe

Wing Tai Holdings Limited 3 Killiney Road#10-01 Winsland House ISingapore 239519

Tel: (65) 6280 9111Fax: (65) 6736 3486

107 Tampines RoadSingapore 535129

Tel: (65) 6309 1200Fax: (65) 6343 0021www.wingtaiasia.com.sg

China

Jiaxin (Suzhou) Property Development Co., Ltd 8/F Blk 1A Singa PlazaNo 8 Jinji Hu RoadSuzhou Industrial ParkPRC 215021

Tel: (86) 512 6761 2128Fax: (86) 512 6761 9098www.wingtaiasia.com.cn

hong Kong

USI Holdings LimitedSuite 31039 Queen’s Road CentralHong Kong

Tel: (852) 2525 9798Fax: (852) 2801 4302www.usi.com.hk

malaYsia

DNP Holdings Berhad

Kuala Lumpur5 Jalan SS23/11Taman SEA47400 Petaling JayaSelangor Darul Ehsan Malaysia

Tel: (603) 7806 3211Fax: (603) 7806 3380

25-3A Jalan SS23/11Taman SEA47400 Petaling JayaSelangor Darul Ehsan Malaysia

Tel: (603) 7880 9381/82Fax: (603) 7880 9380

Penang166-A Rifle Range Road11400 Penang Malaysia

Tel: (604) 828 7291Fax: (604) 828 3998www.wingtaiasia.com.my

CONTENTSChairman’s Message

Every Home Has a Storytimeless. exclusive. modern lifestyle investment. contemporary city rhythm without the blues.

Be Our Guestsuperb location. premium hospitality. experience the comforts of home in a different city.

Tog Sensestylish and inspirational. revel in the finest threads. seriously classy and versatile.

Year In Year Out

corporate data.28

board of directors.29

key management staff.33

corporate governance.34

financial reports.41

0206

14

18

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�

Holding court in Draycott 8 is a �7,000 sq ft award-winning 2-storey colonial clubhouse. This beautifully conserved bungalow houses modern facilities such as an exclusive wine cellar, cigar terrace, Japanese onsen and top-notch concierge service.

2

delivering shareholder ValueThe Group achieved a revenue of S$981.6 million for the current financial year ended 30 June 2007. This represents an increase of 10% from the S$889.3 million in the previous year. This increase is brought about by the higher contribution from the development properties as more property units were sold in Draycott 8, Kovan Melody, The Light at Cairnhill and Amaryllis Ville.

The Group’s operating profit for the current year is S$421.9 million, an increase of S$311.7 million over the previous year. The current year’s operating profit includes the fair value gains of S$189.0 million on investment properties. The fair value gains were taken into account in the income statement as a result of the early adoption of the new Financial Reporting Standard (FRS) 40 Investment Property. Excluding these gains, the Group’s operating profit still rose by a healthy 112% to S$232.9 million in the current year, largely due to profits recognised from the sale of residential property units.

The Group’s net profit attributable to shareholders for the current year is S$381.8 million. This represents an increase of 198% over the net profit of S$128.0 million recorded in the previous year.

The Group’s net gearing ratio has been reduced to 0.4 times as at 30 June 2007 from 0.7 times as at 30 June 2006. This has been brought about by the cash generated from the sale of residential property units and the increase in the Group’s net asset value in the current year.

Chairman’s Messagethe singapore economy grew strongly by 7.6% in the first half of 2007 and is expected to achieve a growth of 7.0% to 8.0% for the full year. the singapore property market sentiment continues to be positive and demand for residential projects has remained strong. asia is growing at an accelerated pace; with the rapid development of emerging markets led by the growth of china in particular, we continue to see good opportunities in the region’s real estate and retail sectors.

As a result of the improved performance, the Board of Directors have recommended a first and final cash dividend of 3 cents per share less tax and a special cash dividend of 5 cents per share less tax. In addition, to utilise the Company’s section 44 balance, the Board has proposed a special rights dividend of 25 cents per share less tax and a 1-for-10 Rights Issue of up to 72.2 million new ordinary shares at an issue price of S$2.05 for each rights share.

sustainable PerformanceSeveral new and strategically located residential developments in Singapore viz. The Riverine by the Park and Casa Merah, were fully subscribed within a month of their releases. We shall be releasing more new residential developments located in the prime districts in the coming year, including Helios Residences along Cairnhill Circle, L’VIV on Newton Road and Belle Vue Residences on Oxley Walk. With the acquisition of additional freehold, prime residential sites viz. the former Ardmore Point site and the former Anderson 18 site, the Group’s residential development portfolio in Singapore has reached 1 million square feet in combined gross floor area.

New projects in Malaysia also progressed well. The Meritz, launched in January 2007, was fully sold. A luxury condominium along Jalan Ceylon is also targeted for launch. DNP Holdings Berhad holds about 10.8 million square feet in gross floor area of landbanks in Kuala Lumpur and Penang.

CHaIrmaN’S meSSage

�

VisionCrest residence is an urban oasis nestled next to the picturesque Fort Caning Park and the beautifully restored House of Tan Yeok Nee.

In May 2007, we created a development and investment real estate platform to inject equity totaling US$450 million to invest in approximately US$1 billion worth of projects in China. We are leading the consortium in identifying business opportunities and managing the venture and its assets; our international partners are SEB Immobilien-Investment GmbH from Germany, Forum Partners from the United States and the Eilam Group Ltd from Israel.

Our portfolio of investment properties through Lanson Place serviced apartments in Singapore, Malaysia, Hong Kong and China, continued to perform strongly and to achieve consistently high occupancies averaging above 90% through the year. Benefiting from rising demands for office space, healthy occupancies of over 90% were achieved in Singapore for Winsland House I, Winsland House II, and Burlington Square.

Our retail arm expanded to achieve S$208 million in revenue under management in the current year. This represents a growth of 28% as compared to last year. As of August 2007, we have 18 brands in over 160 outlets throughout Singapore and Malaysia.

Wing Tai Retail won several awards in the past year for its management and service excellence. We will continue to increase synergies across our business lines to achieve brand success, like the repositioning of G2000 in May 2007. We shall continue to expand our business to seize growth opportunities in the retail sector; several new brands are in the pipeline for the coming year.

RestructuringDuring the year, through a restructuring exercise, USI Holdings Limited acquired the Group’s 27.7% interest in Winsor Properties Holdings Limited in exchange for new shares issued by USI Holdings and Winsor Properties becomes a subsidiary of USI Holdings. After the restructuring, the Group’s interest in USI Holdings increased from 21.0% to 31.8% and USI Holdings has become the Group’s flagship company in Hong Kong.

Building BrandWingTai Asia continues to deliver premier developments, quality products and attention to detail services to customers. As we expand across Asia, we shall continue to leverage on our brand and engage in corporate citizenry activities to enhance our corporate image and reputation in the communities where we do business.

Helios residences allures with close proximity to Singapore’s prime retail and entertainment hub, cosying up to the lush greens of the Cairnhill enclave.

�

Cheng wai KeungChairman

28 September 2007

Lanson Place residences and Lanson Place Hotel extend their trademark premium hospitality across Singapore, Kuala Lumpur, Hong Kong, Shanghai, and most recently, Beijing.

g2000 is for living, working, flirting and succeeding. reflecting the latest fashion trends in europe, with quality fabrics at affordable prices.

“The Group’s operating profit for the current year is S$421.9 million, an increase of S$311.7 million over the previous year.”

CHaIrmaN’S meSSage

Board movementWe welcome Mr Paul Tong Hon To who joined us as Non-Executive Director in August 2007. We bade farewell to Mr Christopher Patrick Langley, OBE and Mr Ne Chen Duen who retired in October 2006 and August 2007, respectively. On behalf of the Board, I thank Christopher and Chen Duen for their contributions to the Board over the years.

Recognising ContributionsI thank my fellow Board members for their invaluable insights and guidance to the Group. I also commend our management and staff for their passion, dedication and integrity, without whom the strong results this past year could not be achieved. Finally, I thank our many stakeholders, including shareholders, customers, bankers, and business partners, for their continued support of the Group.

�

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TimElESS. ExCluSivE. mOdErN lifESTylE iNvESTmENT.

CONTEmpOrary CiTy rhyThm wiThOuT ThE bluES.

every home

has a storyproperty

7

a major architectural icon in the Orchard road area, the Helios residences will be a beacon of style and luxury.

8

PrOPerTY

Property

singaporeSingapore res ident ia l p roper t y market ach ieved unprecedented benchmark prices, especially in the high-end luxury sector. Strong demand for high-end residential homes was attributed to strong economic fundamentals and tremendous growth in the various sectors of the economy, particularly wealth and financial services. According to Urban Redevelopment Authority (URA), some 11,147 new homes were sold in 2006, outstripping the sales of 8,955 new homes in 2005.

Riding the upside of the market, the Group recorded strong performance in its sale of 1,300 units with a total sales value of approximately S$1.8 billion in the current year. The Group made its mark in developing distinctive, prime, luxury homes in districts 9, 10 and 11, through innovative lighting, landscaping and design approaches that catered to mid- to high-end market homebuyers. We were awarded the prestigious URA Architectural Heritage Award 2006 for the conservation of the 2-storey building for Draycott 8 clubhouse.

Luxury developments like Draycott 8, The Light at Cairnhill and The Grange were fully sold. VisionCrest Residence, an exclusive 265-unit freehold development near the Dhoby Ghaut MRT Interchange Station, continue to register robust sales with close to 90% of units subscribed.

Kovan Melody, a residential development comprising 778 units was completed with Temporary Occupation Permit obtained in December 2006. All units were taken up by end March 2007.

In April 2007, Casa Merah, a suburban joint venture project was officially launched. With its convenient location next to the Tanah Merah MRT Station, the 556-unit condominium development received overwhelming response from homebuyers, with all units fully sold within a month from launch.

Helios Residences, Wing Tai’s latest freehold development along Cairnhill Circle also registered strong interests among homebuyers. Cradled amongst 7-storey lush vines and incorporating a unique Tree Top Recreation Deck soaring 4 levels above ground, more than 70 units of this development have been sold to date.

In August 2006, the Group purchased the freehold site at 398 Kallang Road, which was later named The Riverine by the Park. The 96-unit luxury development located besides the Kallang Riverside Park registered strong interest among homebuyers, with all units fully sold in an exclusive preview exercise in April 2007.

The riverine by the Park, sited in the greater marina Bay area, overlooks a cityscape framed by palm trees, where a new vista unfolds with each sunset.

�

The Group continued to seek opportunities to enhance its land portfolio with prime site acquisitions viz. Ardmore Point in Ardmore Park, with a land area of 60,534 square feet was acquired in October 2006; Anderson 18 on Anderson Road, with a land area of 112,098 square feet, was also acquired with a joint venture partner in January 2007.

Singapore office market continued to enjoy robust rental growth, with demand driven primarily by banking and financial institutions, logistics and IT companies. Further rental upside is expected with office supply remaining tight over the next 2 to 3 years. Winsland House I, Winsland House II and Burlington Square enjoyed high occupancies averaging above 90%. Sale of VisionCrest Commercial block and The House of Tan Yeok Nee was effected in January 2007.

Going forward, the Group expects to continue to benefit from a tight office rental market, with further enhancement in the value of office assets.

malaysia The Group’s property business activities in Malaysia were conducted through DNP Holdings Berhad, its subsidiary company listed on Busa Malaysia Securities Berhad.

The Meritz, a luxury 31-storey serviced residences tower comprising 110 units of 2- and 3-bedroom apartments, was launched in January 2007. It is strategically located within the heart of Kuala Lumpur’s Golden Triangle, a 3-minute walk to KLCC (Kuala Lumpur City Centre) Twin Towers and Suria KLCC and LRT station. Construction of The Meritz, fully sold, would complete by end 2007.

With plans to develop the Menara DNP site into an iconic residential tower designed by well known French Architect, Ateliers Jean Nouvel, planning submissions are pending approval from the Authorities. The Menara DNP site is located along Jalan Ampang and is directly opposite the KLCC Twin Towers.

The Bukit Ceylon site, along Jalan Ceylon and off Jalan Raja Chulan, was purchased in 2005 to be developed into a residential condominium. The site is strategically located within walking distance to the bustling commercial area of Jalan Raja Chulan, yet close to the Bintang Walk shopping area and entertainment hub. The development will be designed by well-known Australian architectural firm, Guida Moseley Brown (GMB) Architects. Planning approvals were obtained and piling works commenced in June 2007. The sales launch was tentatively scheduled for 2nd quarter 2008.

Sering Ukay, located off Middle Ring Road II, Hulu Kelang, is a landed scheme of 125 acres of freehold land, only 9 km from the KLCC. Phase 1 consisting 176 units of 2 and 21/2-storey terrace houses was soft launched in September 2005. Of the 153 units released, 144 units were taken up showing strong response from buyers. Construction works of Phase 1 will be completed by September 2007. Show units of Phase 2 consisting 195 units were ready in August 2007.

The Tomlinson is a striking synthesis of granite and glass, unlike any residence in Singapore. This architectural tour de force is dramatically illuminated at night.

“Going forward, the Group expects to continue to benefit from a tight office rental market, with further enhancement in the value of office assets.”

�0

The meritz, a luxury ��-storey serviced residences tower comprising ��0 units and just three minutes walk from the KLCC Twin Towers, is fully sold.

left & aBoVe Sering Ukay is a landed scheme of �2� acres of freehold land – only � km from the iconic KLCC.

PrOPerTY

“Strong demand for high-end residential homes was att r ibuted to strong economic fundamentals and tremendous growth in the various sectors of the economy, particularly wealth and financial services.”

The Jalan U-Thant site, located in the quiet and affluent area of Ambassador Row, was acquired in May 2007. The site will be redeveloped into a high-end condominium; planning submissions will be made to the Authorities in September 2007.

In Johor Bahru, piling works for Phase 2 of Plaza DNP were completed in May 2006. Located within the commercial district of Johor Bahru city, the development was approved as a 38-storey residential tower.

In Penang, Phase 3 of Taman Seri Impian consisting 2-storey terrace houses with an overall land area of 45 acres, was 85% completed. There were also 3 smaller on-going projects of semi-detached and bungalow units, namely The Sentinelle Watch, Sentinelle Garden and Gems Garden in Penang. Mirage Boulevard, a new 56-acre mixed housing development project, will be launched in 2007.

��

The Lakeside in Suzhou, China is an exclusive residential development that sits next to the scenic Jinji Lake – China’s biggest city lakeside park in Suzhou Industrial Park.

ChinaOutlook for China is positive with its Gross Domestic Growth averaging more than 10% in the last three years. The Group continues to extend its presence in China.

New partnerships were formed for sustainable growth. In May 2007, the Group formed a consortium with three international partners viz. SEB Immobilien-Investment GmbH from Germany, Forum Partners from the United States and the Eilam Group Ltd from Israel, to inject equity totaling US$450 million to invest in approximately US$1 billion worth of projects in China.

Kicking off the activities of the consortium, in September 2007 the Group formed a joint venture company with China’s Chengdu Jinli (Group) Co. Ltd. to develop a real estate project located in the prime district of Chengdu, the capital of Sichuan Province, with a total investment of approximately RMB 800 million (S$160 million). When completed, the mixed development project will offer new opportunities for city living with hotels/serviced apartments, residential, office and retail spaces, and be among the tallest buildings in the city.

Up until May 2007, the Group’s property investment in Suzhou was mostly conducted through its subsidiary company Jiaxin (Suzhou) Property Development Co., Ltd. The Lakeview, comprising 453 apartment units is a high-end residential project in the heart of the China-Singapore Suzhou industrial Park with a panoramic view of the beautiful Jinji Lake. The

Phase 1 launch was well received by homebuyers and investors, with 96% of the first batch comprising 101 units fully sold. The second batch comprising 12 units will be launched during the second half of 2007. Work on Phase 2 has commenced with a launch expected in 2008.

A stone’s throw away from the western bank of Jinji Lake is The Lakeside, another high-end residential development with beautiful landscapes and top- class clubhouse services and facilities. In Phase 1, 98% of the 64 apartments were taken up. All the 20 villas and 4 out of 5 townhouses were sold as prices continue to escalate. Construction on Phase 2, comprising 4 luxury apartment blocks of 84 units, will start in the second half of 2007 and is scheduled for launch in 2008.

hong KongThe Group’s property interests in Hong Kong were represented by investments in the USI Holdings Group, listed on the Stock Exchange of Hong Kong.

The Grandville, an exclusive development in Shatin pre-sold at end 2004, was completed in second half 2006. The project had received positive market response, with all remaining units of The Grandville fully sold by end 2006.

The Giverny, a luxury villa development in Hebe Haven, Sai Kung, was launched in October 2005 and continue to attract keen interest from homebuyers and investors.

Smack in the heart of the China-Singapore Suzhou Industrial Park, The Lakeview is one of Suzhou’s most upmarket, in-demand residential projects. as the name suggests, The Lakeview peers over the mirror-like Jinji Lake. The construction of Phase 2 is currently underway.

�2

Twin-tower office building in Hong Kong, designed by world renown firm arquitectonica International, offering grade-a office space by 2008.

The giverny in Hong Kong is a high quality residence project perched on a verdant peninsula overlooking beautiful Hebe Haven.

“The Grandville, an exclusive development in Shatin pre-sold at end 2004, was completed in second half 2006. The project had received positive market response, with all remaining units of The Grandville fully sold by end 2006.”

PrOPerTY

Another residential development project, 157 Argyle Street provides about 90,000 square feet of floor space. This is 80% owned by USI Holdings and is scheduled for completion in 2009.

In end 2006, two memoranda of agreements were signed with partner developers in Hong Kong to jointly develop 2 pieces of land situated at Tai Po Town Lot Nos. 187 and 188, Pak Shek Kok, Tai Po. USI Holdings had 15% interest on each MOA, with attributable floor area of 165,000 square feet.

USI Holdings’ first foray into office and retail sectors in Hong Kong started with the acquisition of the former Bank of East Asia Building in 2005, which was later named W Square. Situated at 314-324 Hennessy Road, Wanchai, renovation work of the mixed development was due for completion in December 2007.

In another development, the twin-tower office development at 102 How Ming Street in Kwun Tong, providing 1.2 million square feet of Grade-A office space, commenced superstructure construction work in April 2007 and is scheduled for completion in second half 2008.

USI Holdings’ industrial buildings, namely the Shui Hing Centre and Unimix Industrial Centre, reported high occupancy rates of around 90%. These continue to generate stable rental income for the Group.

New high-end condominium planned, in the golden Triangle of Jakarta designed by arquitectonica International.

Jakarta, indonesiaIn Jakarta, the 173,085 square-foot site located at the junction of Jalan Rasuna Said and Jalan Casablanca (in the Golden Triangle of Jakarta), will be developed into a 200-unit high-end condominium. The project is presently in the design stage.

��

be our guest

SupErb lOCaTiON. prEmium hOSpiTaliTy. ExpEriENCE ThE COmfOrTS Of hOmE iN a diffErENT CiTy.

hospitality

��

be our guest

��

Lanson Place Winsland, Singapore

��

In Singapore, Lanson Place Winsland continued to report high occupancy rate of 95% as of June 2007. In Kuala Lumpur, Lanson Place Ambassdor Row has achieved current high occupancy rate of 95%, while Lanson Place Kondominium 8 held its leading position in the Ampang area with a high occupancy rate of 97% in first half 2007.

Since its opening in March 2006, Lanson Place Hotel at 133 Leighton Road became Hong Kong’s first member of “Small Luxury Hotels of the World”. It also won the prestigious “Boutique Hotel of the Year in the SCMP/Harper’s Bazaar Style Awards” in early 2007. Occupancy rate was high at 86% as of June 2007 despite it being operational for just over a year.

In Shanghai, Lanson Place Jinlin Tiandi Residences had been recognised as a leading serviced residences in Shanghai in terms of quality and service, achieving high occupancy rate of 95%.

Construction of Lanson Place Central Park Residences in Beijing was substantially completed with remaining interior works in progress. The opening of the property was targeted for 2nd quarter 2008. As the number of expatriates increased in China, the Group expects strong demand for high-end service apartments and continues to seek opportunities for expansion in the various Chinese cities.

HOSPITaLITY

Hospitality

the group has also extended its high standards of quality and attention-to-detail hospitality services to develop and manage the lanson place chain of serviced residences. lanson place residences and lanson place hotels are currently represented in singapore, kuala lumpur, hong kong, shanghai and, most recently, in beijing. in view of continued demand for high-end serviced apartments in the region, the group aims to seize opportunities to expand its presence in existing markets, and in more gateway cities in southeast asia.

Lanson Place residences exemplify the kind of charming homeliness, cool amenities and heartwarming service that, once tasted, will have residents coming back for more.

�7

STyliSh aNd iNSpiraTiONal. rEvEl iN ThE fiNEST ThrEadS.

SEriOuSly ClaSSy aNd vErSaTilE.

togsense

retail + lifestyle

�8

togsense

��

Warehouse is one of UK’s marquee fashion brands, catering to chic twenty-somethings in the UK, Ireland, USa, germany, Cyprus, middle east and now Singapore. Sumptuous fabric that looks right at home at The Tomlinson.

20

In Singapore, the Group has a portfolio of 17 brands across 123 shops and is now a specialty chain stores retailer, with fashion retail as its core earnings driver.

Several new brands were introduced in the year, including Pumpkin Patch for children’s wear from New Zealand; Ben Sherman for designer menswear from the UK; Diva for fashion jewellery from Australia and Charles Tyrwhitt for men’s tailored shirting from Jermyn Street, London, UK.

In March 2007, several fashion brands, namely Topshop/Topman, Miss Selfridge, Ben Sherman, Dorothy Perkins, Warehouse, Fox and G2000 participated in the Singapore Fashion Festival at both the main event hall and fringe events at various shopping malls.

Against the backdrop of a highly competitive quick service environment, Yoshinoya continues to show improvements in both revenue and profitability. 14 dishes from the Yoshinoya menu were given the Healthier Choices Award by the Health Promotion Board under its Healthier Dining program in September 2006. Yoshinoya at Ngee Ann City was also voted one of top three restaurants in Singapore and given the People’s Choice Award in October 2006. Mrs Helen Khoo, Executive Director of Wing Tai Retail, won the International Management Action Award (IMMA) in March 2007.

The Group’s continued focus on staff training and development gained us industry recognition for service and management excellence. Two retail shop-in-charges from Topshop and G2000 were elected Finalists for the prestigious Excellent

Retail + Lifestyle

reTaIL + LIFeSTYLe

g2000 is all about modern living, with endless options to suit the occasion and capture the mood of the discerning dresser. Quality cuts and friendly price tags for the working class.

This dapper collection hails from London’s Jermyn Street, renowned for its quality retailers and craftsmen since �7�0. Charles Tyrwhitt offers premium classic business wear spiced with British wit.

Yoshinoya is famous for its extremely palatable Beef Bowl (gyudon), filling hungry stomachs in �2�� outlets in Japan, USa, Hong Kong, China, Philippines, Singapore, malaysia, Taiwan and australia.

2�

Service Awards Superstar in the Retail segment of the Excellent Service Awards hosted by Spring Singapore and Singapore Retailer Association, and the G2000 supervisor won Excellent Service Superstar in November 2006.

In Malaysia, the Group’s retail and lifestyle businesses are conducted through its subsidiary company, DNP Clothing Sdn Berhad.

Operations in Malaysia reported revenue year-on-year growth of 38%, with 9 brands in 32 shops.

For the coming year, the Group plans to open more than 10 new shops at various new malls viz. Pavilion, Mid-Valley Gardens and Sunway extension.

Fox Kids autumn/Winter Collection 2007 transforms grubby kids into oh-so-cute sophisticates. Style-conscious parents will be spoilt for choice with over �00 styles in each fashion line.

“The Group’s continued focus on staff training and development gained us industry recognition for service and management excellence.”

Topshop enjoys top brand awareness among young fashionistas, one of whom makes an appearance at The Tomlinson.

Built on a passion for sports and sporting lifestyle, and engineered to perform, adidas by Wing Tai Clothing, is catered to the different needs of each individual.

22

reTaIL + LIFeSTYLe

miss Selfridge autumn/Winter Collection 2007 is Britain’s leading young fashion label with funky, quirky and exciting designs. a touch of femininity, looking resplendent at The Helios residences.

2�

july_06Wing Tai Clothing successfully secured exclusive rights in Singapore to launch Diva, Australia’s largest accessories chain. There are 6 Diva outlets island-wide.

august_06 Wing Tai purchased the freehold site of 398 Kallang Road next to Kallang Riverside Park. The 35,323 square-foot site was named The Riverine by the Park.

september_06Wing Tai won the prestigious URA Architectural Heritage Award 2006 for the conservation of the 2-storey colonial building for Draycott 8 clubhouse.

Wing Tai Clothing launched Ben Sherman in Singapore, with its first outlet at Paragon.

The Nexus, a freehold residential development nestled in the prestigious Bukit Timah neighbourhood, obtained its Temporary Occupancy Permit.

USI Holdings acquired 33 apartment units in Tower 15 and 33 car park spaces at Central Park located in Chaoyang District of Beijing, China.

14 dishes from Yoshinoya’s menu were awarded as Healthier Choices under the Healthier Dining program by the Health Promotion Board.

year in year out

g2000 helps you to look like a million dollars without costing the earth.

eVeNTS CaLeNDar

2006

2�

november_06At the prestigious Excellence Service Award 2007, G2000 clinched 12 Star, 29 Gold and 13 Silver awards while Wing Tai Clothing bagged 2 Star, 7 Gold and 32 Silver awards. Fox Fashion received 3 Gold and 10 Silver awards while Yoshinoya clinched 11 Silver awards.

G2000 supervisor won the SuperStar Excellent Service Award (Retail Category), and together with another colleague from Topshop, was nominated as Top 3 Finalists for the award, organised by SPRING and 7 leading industry associations.

december_06Kovan Melody, a 99-year leasehold development comprising 778 units located along Kovan Road obtained its Temporary Occupation Permit.

Wing Tai Clothing introduced Charles Tyrwhitt in Singapore, bringing the top provider of classic Jermyn Street London shirts to Singapore. The first outlet opened in VivoCity.

Pumpkin Patch

october_06The 42nd Annual General Meeting was successfully conducted.

Wing Tai received Associate of the Arts Award from the Singapore National Arts Council. The award recognised the company’s contributions to the Arts in 2005.

Wing Tai purchased the 60,534 square-foot freehold site of Ardmore Point located at Ardmore Park at a price of S$201 million.

Wing Tai Clothing introduced Pumpkin Patch to Singapore, with the opening of its first concept store at VivoCity. Pumpkin Patch offers fresh and fashionable clothes with inspiring designs, catering to children in each age group.

G2000 was voted Best Shop for Corporate Wear in CLEO magazine.

Yoshinoya at Ngee Ann City was one of Top 3 restaurants in Singapore to achieve People’s Choice Award.

The riverine By The Park

2�

january_07VisionCrest Residence, a freehold development comprising 265 units located along Oxley Rise obtained its Temporary Occupation Permit.

Wing Tai entered into an agreement to sell the VisionCrest Commercial block and The House of Tan Yeok Nee at a total consideration of S$260 million.

Wing Tai acquired Anderson 18 with a joint venture partner; the 112,098 square-foot prime freehold residential site located along Anderson Road will be developed into a high-end residential development.

The Meritz, a 31-storey serviced residences located opposite Kuala Lumpur City Centre (KLCC) and Petronas Twin Towers was officially launched. The exclusive development was well received by buyers, with all units fully sold.

march_07During the Singapore Fashion Festival (SFF), Wing Tai Clothing presented the Topshop Unique and Topman Design show at Ngee Ann City Civic Plaza.

Mrs Helen Khoo, Executive Director for Wing Tai Retail was awarded the prestigious International Management Action Award (IMMA). The award administrated by the Chartered Management Institute was in recognition of her exceptional management skill.

G2000 was recognised among Top 40 establishments for The Best of Singapore in Service Excellence by the Singapore Tourism Board.

april_07Casa Merah, a 556-unit joint venture project was officially launched. The development, located next to the Tanah Merah MRT Station was fully sold within a month.

USI Holdings entered into Memorandum of Agreement with Nan Fung to jointly acquire and develop a residential site located at Tai Po, New Territories in Hong Kong.

The meritz

2007

2�

eVeNTS CaLeNDar

Ben Sherman

may_07Wing Tai entered into a strategic partnership with 3 international investors to lead real estate development and investment platform in China, expected to invest in approximately US$1 bil l ion worth of projects in the market.

The Riverine by the Park, a 96-unit residential development located beside the Kallang Riverside Park, was fully sold before launch.

As part of its re-branding exercise, G2000 opened its flagship concept store at OUB Centre. The 4,600 square foot 2-storey store houses G2000, blù, Pink Label and Black Label, offering one-stop shopping for contemporary wear for all occasions.

june_07The Extraordinary General Meeting was duly convened.

Through a restructuring exercise, USI Holdings Limited acquired the Group’s 27.7% interest in Winsor Properties Holdings Limited in exchange for new shares issued y USI Holdings and Winsor Properties becomes a subsidiary of USI Holdings. After the restructuring, the Group’s interest in USI Holdings increased from 21.0% to 31.8% and USI Holdings has become the Group’s flagship company in Hong Kong.

The initial release of 50 units at Helios Residences, a 140-apartment luxury development located along Cairnhill Circle, was fully subscribed. To date, over 70 units have been sold.

Wing Tai sponsored the Asian premiere of Sinfonia Eroica’s performance at the Singapore Arts Festival; the dance was choreographed by Michèle Anne de Mey.

27

BoaRd of diReCtoRsCheng Wai KeungChairman

Edmund Cheng Wai WingDeputy Chairman

Boey Tak Hap

Cheng Man Tak

Tan Sri Dato’ MohamedNoordin bin Hassan

Lee Han Yang

Lee Kim Wah

Loh Soo Eng

Phua Bah Lee

Paul Tong Hon To

aUdit CommitteePhua Bah LeeChairman

Boey Tak Hap

Lee Han Yang

Paul Tong Hon To

RemUneRation CommitteeLee Han YangChairman

Boey Tak Hap

Tan Sri Dato’ Mohamed Noordin bin Hassan

Loh Soo Eng

nominating CommitteeLoh Soo EngChairman

Cheng Wai Keung

Tan Sri Dato’ Mohamed Noordin bin Hassan

Phua Bah Lee

ComPanY seCRetaRiesOoi Siew Poh

Gabrielle Tan

eXeCUtiVe diReCtoRsCheng Wai KeungManaging Director

Edmund Cheng Wai WingDeputy Managing Director

Lee Kim WahFinance Director

eXeCUtiVe offiCeRsTan Hwee BinChief Operating Officer

Karine LimGeneral ManagerGroup Human Resource

sUBsidiaRY ComPaniesDNP Holdings BerhadDato’ Roger Chan Wan ChungExecutive Director

Wing Tai LandChng Chee BeowExecutive Director

Wing Tai retailHelen KhooExecutive Director

Wing Tai Property managementLen Siew LianGeneral Manager (Marketing)

RegisteRed offiCe3 Killiney Road #10-01Winsland House ISingapore 239519

Tel: 6280 9111Fax: 6732 9956

Website: www.wingtaiasia.com.sg

RegistRaR & tRansfeR offiCeTricor Barbinder Shareregistration Services(A division of Tricor Singapore Pte. Ltd.)

8 Cross Street#11-00 PWC BuildingSingapore 048424

aUditoRsPriceWaterHouseCoopersCertified Public Accountants8 Cross Street#17-00 PWC BuildingSingapore 048424

Quek Bin HweeAudit Partner(Year of appointment: 2006)

PRinCiPal BanKeRsDBS Bank Limited6 Shenton WayDBS BuildingSingapore 068809

The Hongkong and Shanghai Banking Corporation Limited21 Collyer QuayHSBC BuildingSingapore 049320

malayan Banking Berhad2 Battery RoadMaybank TowerSingapore 049907

Overseas-Chinese Banking Corporation Limited65 Chulia StreetOCBC CentreSingapore 049513

The Bank of Tokyo-mitsubishi UFJ, Ltd9 Raffles Place #01-01Republic PlazaSingapore 048619

United Overseas Bank Limited80 Raffles PlaceUOB PlazaSingapore 048624

COrpOraTE daTa

28

Cheng wai KeUng Chairman/Managing Director

Mr Cheng Wai Keung has been appointed Chairman of the Board of Wing Tai Holdings Limited (the “Company”) since 1994. He is also Managing Director of the Company and a member of the Nominating Committee.

Mr Cheng is Chairman of Neptune Orient Lines Limited, Vice Chairman of Singapore-Suzhou Township Development Pte Limited and Managing Director of DNP Holdings Berhad. He holds directorships in public and private companies, including GP Batteries International Limited and has served on the boards of several government organizations. He was awarded the Distinguished Service Order (DUBC) by the Singapore Government in August 2007, and received the Public Service Star (Bar) (BBM-Lintang) in 1997 and Public Service Star (BBM) in 1987. He is appointed Justice of The Peace by the Singapore President since 2000, and has served on the Panel for Disciplinary Committees of Inquiry appointed by the Public Service Commission of the Prime Minister Office since 2001.

Mr Cheng graduated with Masters of Business Administration from the University of Chicago, after obtaining his Bachelor of Science degree from Indiana University.

Mr Cheng was last re-elected Director on 26 October 2006.

edmUnd Cheng wai wing Deputy Chairman/Deputy Managing Director

Mr Edmund Cheng is Deputy Chairman and Deputy Managing Director of the Company since joining the Company in 1984. He is responsible for property development, investment and management activities of the Group.

Mr Cheng is Chairman of the Singapore Airport Terminal Services Limited and Mapletree Investments Pte Ltd. He sits on the board of SNP Corporation Ltd and DNP Holdings Berhad. He also chairs Singapore’s National Arts Council and DesignSingapore Council. He is a member of the International Council for Asia Society.

He chaired the Singapore Tourism Board, the Old Parliament House Limited, and The Esplanade Co Ltd where he is now a member. He sat on the board of the Construction Industry Development Board, the Urban Redevelopment Authority and Singapore Airlines Limited. He was President of REDAS (Real Estate Developers’ Association of Singapore) and now serves as a member on its Presidential Council.

Mr Cheng was awarded the Public Service Star Award (BBM) in 1999 by the Singapore Government. He was also recognised by Tourism Awards Singapore as Outstanding Contributor to Tourism in 2002.

Mr Cheng graduated from Northwestern University and Carnegie Mellon University in USA, with a Bachelor’s degree in Civil Engineering and Master’s in Architecture.


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2�

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BoeY taK haP

Mr Boey Tak Hap has been a non-executive director since 2 May 1997. He is a member of both the Audit Committee and Remuneration Committee.

Mr Boey was formerly the Chief of Army, Singapore Armed Forces and the President & CEO of Singapore Power Group. He was also the President & CEO of SMRT Corporation as well as Chief Executive of the Public Utilities Board.

Mr Boey graduated from the University of Manchester Institute of Science and Technology with a Bachelor of Science degree in Automatic Control & System Engineering with Management Sciences. In January 2002, he was conferred the Honorary Doctorate of Doctor of Engineering by his alma mater. He also holds a Diploma in Business Administration from the National University of Singapore and has attended the Harvard Business School’s Advanced Management Programme in Boston, USA.

Mr Boey was last re-elected Director on 26 October 2006.

Cheng man taK

Mr Cheng Man Tak has been a non-executive director since 11 May 1981. He serves as a director of the Federation of Hong Kong Garment Manufacturers and is a member of the Occupational Safety & Health Council of Hong Kong and an authority member of Clothing Industry Training Authority. He is also a member of the Advisory Committee of Poly University (Institute of Textile and Clothing Industries) in Hong Kong.

Mr Cheng graduated from the University of Southern California with a Bachelor of Science degree and holds a Masters in Business Administration from Pepperdine University, USA.


tan sRi dato’ mohamed nooRdin Bin hassan

Tan Sri Dato’ Mohamed Noordin bin Hassan has been a non-executive director since 27 September 2002 and is currently a member of both the Nominating Committee and Remuneration Committee.

Tan Sri Dato’ Mohamed Noordin has more than 40 years of working experience with the government of Malaysia and the private sector serving in various government departments at District, State and Federal levels including as Deputy Secretary General, Ministry of Trade and Industry, Secretary General, Ministry of Science, Technology and Environment and Secretary General, Ministry of Education. He retired from the Malaysian Civil Service in September 1994 and was subsequently offered a job with the Malaysian government owned company, Petronas Berhad.

He served Petronas Berhad until 31 August 2000, first as Vice-President in charge of Group Human Resource, subsequently as Vice President of Education.

Tan Sri Dato’ Mohamed Noordin is currently Chairman of DNP Holdings Berhad in Malaysia. He also sits on the Board of several subsidiaries of DNP Holdings Berhad as well as other companies in Malaysia.

Tan Sri Dato’ Mohamed Noordin graduated from the University of Malaya with a Bachelor of Arts (Honours) degree in Economics. He also holds a Masters degree in Public & International Affairs from the University of Pittsburgh, USA.

Tan Sri Dato’ Mohamed Noordin was re-elected Director on 13 October 2005.

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lee han Yang

Mr Lee Han Yang has served as a non-executive director since 3 January 1989 and is currently Chairman of the Remuneration Committee and a member of the Audit Committee. He is a Barrister-at-Law of Lincoln’s Inn, London. He is an Advocate and Solicitor of the Supreme Court of Singapore and is a Consultant at Messrs Peter Low Partnership. He is also a director of several public and private companies in Singapore.

Mr Lee is an active member of the Law Society of Singapore and has served on several committees of the Law Society. At present, he serves on the board of the National Council of Social Services and on the Society for the Physically Disabled. In August 2006, he was awarded the Public Service Star (BBM) by the President of Singapore.

Mr Lee was last re-appointed Director on 26 October 2006.

lee Kim wah

Mr Lee Kim Wah has served as an executive director since 2 May 1977. He is responsible for the finance, human resource and administrative functions of the Group.

Educated in Accountancy in Australia, Mr Lee was a Manager in a public accounting firm, prior to joining the Company. He has been with the Group for more than 30 years.

Mr Lee was conferred the Public Service Medal (PBM) in 2000 and is currently the Treasurer of the Singapore National Employers’ Federation.

Mr Lee was last re-elected Director on 22 October 2004.

loh soo eng

Mr Loh Soo Eng was an executive director for the property division of the Wing Tai Group since 1991. He retired as an executive director on 1 June 2004 and is currently serving as a non-executive director. He is currently Chairman of the Nominating Committee and a member of the Remuneration Committee.

Mr Loh is a director of USI Holdings Limited.

His past experiences are in power station, oil company, shipbuilding and shiprepairing industries as well as banking.

Prior to joining the Company, Mr Loh was with the DBS Group for 17 years, holding the posts of Executive Director of Raffles City Pte Ltd, and General Manager of DBS Land. He has also served on a few Government committees, including SAFTI Military College and Temasek Polytechnic. He was a Chairman of SLF Properties Pte Ltd and SLF Management Services Pte Ltd and was President of Real Estate Developers’ Association of Singapore (REDAS) from 2001 to 2003.

Mr Loh graduated with a Bachelor of Engineering (Mechanical) from the University of Adelaide, Australia.

Mr Loh was last re-elected Director on 22 October 2004.

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PhUa Bah lee

Mr Phua Bah Lee has served as a non-executive director since 11 January 1989 and is currently Chairman of the Audit Committee and a member of the Nominating Committee.

Mr Phua currently holds directorships in a number of public and private companies. He was the Parliamentary Secretary of the Ministry of Communications (1968 to 1971), Senior Parliamentary Secretary of the Ministry of Defence (1972 to 1988) and a member of Parliament for the Tampines Constituency (1968 to 1988).

Mr Phua graduated from the Nanyang University in Singapore with a Bachelor of Commerce degree.

Mr Phua was last re-appointed Director on 26 October 2006.

PaUl tong hon to

Mr Paul Tong Hon To has been a non-executive director since 16 August 2007. He is a member of the Audit Committee.

Mr Paul Tong is currently Executive Vice President and General Counsel of Johnson Electric Holdings Limited, where he was appointed as Chief Financial Officer in 1995. He has many years of senior management experience in manufacturing and trading businesses with global operations.

Mr Paul Tong obtained his BSc (Economics) and postgraduate Certificate of Management Studies from the University of London and the University of Oxford in England respectively. He was admitted as a Barrister of the Middle Temple in England, the Supreme Court of Hong Kong, and the High Court of Australia. He is also a CPA of The Hong Kong Institute of Certified Public Accountants; and an Associate Member of The Institute of Chartered Secretaries and Administrators.

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kEy maNagEmENT STaff

tan hwee Bin

Ms Tan Hwee Bin is Chief Operating Officer of Wing Tai Holdings Limited. Prior to joining the Group in November 2000, she was Asia Pacific Regional Finance & IT Director, and Global Finance Director in a multinational corporation, and has worked in Hong Kong and China.

Ms Tan is a Certified Public Accountant and graduated with a Bachelor of Accountancy degree from the National University of Singapore. She has attended management courses in Oxford University and INSEAD at Fontainebleau; in 2005, she completed the Advanced Management Program at Harvard Business School in Boston.

Ms Tan is Director of NTUC Fairprice Co-operative Ltd. She is also a member of Central Singapore Community Development Council and the Finance and Establishment Committee of Chinese Development Assistance Council.

KaRine lim

Ms Karine Lim is General Manager, Group Human Resource and has been with the Group since March 2004. Prior to joining the Group, she has more than 18 years of human resource management experience in the retail, property and public transport industries. She graduated with a Bachelor of Arts (Honours) degree from the National University of Singapore and has acquired a Diploma in Human Resource Management from the Singapore Human Resource Institute.

dato’ RogeR Chan wan ChUng

Dato’ Roger Chan Wan Chung joined DNP Holdings Berhad as General Manager in June 1971 and he is one of the pioneer staff of DNP Group. With over 30 years’ experience in the garment business, he assists the Managing Director in overseeing the day-to-day operations of the DNP Group.

He was appointed to the DNP Board on 18 August 1988 and currently sits on the Board of several subsidiaries of the DNP Group and other private limited companies.

Chng Chee Beow

Mr Chng Chee Beow is Executive Director of Wing Tai Land and has been with the Group since October 1987. He is a registered Architect by profession. Mr Chng is currently the Honorary Treasurer of REDAS Management Committee and Chairman of SRP-Real Estate Management & Maintenance Industry (SRP-REMMI) - Industry Lead Body. He is the President of International Alliance for Interoperability (IAI) by Building Construction Authority (BCA), Planning Appeals Inspector of Ministry of National Development and a member of the URA Design Advisory Committee.

He is also an active member of several government and private bodies. He graduated with a Bachelor of Architecture and has a post-graduate Diploma in Building Science from the National University of Singapore.

helen Khoo

Mrs Helen Khoo is Executive Director of Wing Tai Retail and oversees the Group’s retail and food businesses. Prior to joining the Group in 1995, she was based in Hong Kong as senior executive with a transnational corporation holding a diversified portfolio. With over 20 years of experience in the retail and fast food business, Mrs Khoo drives the Group’s growth and expansion in its portfolio of retail brands. Having led the retail arm of the Company to winning various industry awards, Mrs Khoo was herself awarded by the International Management Action Award (IMAA) recognising excellence in People Management.

She is an active council member of the Singapore Retailers Association and Orchard Road Business Association. She graduated with a Bachelor of Arts degree from the University of Hong Kong.

len siew lian

Ms Len Siew Lian is General Manager (Marketing) of Wing Tai Property Management. She oversees marketing and sales, including project launches of the Group’s development properties for sale. She joined the Group in September 1989 where she was mainly involved in the commercial leasing of both office and retail, having spent her early career with an international property consultancy company. She graduated with a Bachelor of Science (Estate Management) degree from the National University of Singapore.

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COrpOraTE gOvErNaNCE

The Company is committed to maintaining high standards of Corporate Governance and conduct to enhance corporate performance and accountability. The Company has adopted the principles, structures and processes of corporate governance as set out in this report.

BoaRd matteRs

The Board’s Conduct of its Affairs

The Board provides strategic guidance and entrepreneurial leadership for the Company and ensures that the Company has the necessary financial and human resources to meet its objectives. Its principal functions include approving strategic business plans, major acquisitions or disposal of assets, dividends and other returns to shareholders, fund raising exercises, corporate and financial restructuring and interested person transactions of a material nature, reviewing Management performance, reviewing the Group’s corporate policies and financial performance, approving quarterly and annual financial results of the Group, and establishing a framework of prudent and effective controls to assess and manage risk. The Board continues to set the Company’s values and standards to ensure obligations to shareholders and other stakeholders are properly understood and met.

The Board conducts regular meetings on a quarterly basis and/or as necessary when circumstances arise. A total of six Board meetings were held in the current financial year. Details of attendance of the directors at the Board and Board Committee meetings are as follows:

directors’ attendance at Board and Board Committee meetings for fY2007

audit remuneration Nominating Name Board Committee Committee Committee

meetings Held: �* meetings Held: � meetings Held: � meetings Held: �

meetings attended meetings attended meetings attended meetings attended

Cheng Wai Keung 5* 1

Edmund Cheng Wai Wing 5*

Boey Tak Hap 6 5 3

Cheng Man Tak 4*

Tan Sri Dato’ Mohamed Noordin bin Hassan 6 1

Lee Han Yang 6 5 3

Lee Kim Wah 6

Loh Soo Eng 6

Ne Chen Duen ** 6

Phua Bah Lee 6 5 3 1

Notes: * One of the six Board meetings was convened for the purpose of considering and approving an interested person transaction. As Mr Cheng Wai

Keung, Mr Edmund Cheng Wai Wing and Mr Cheng Man Tak are associates of the relevant interested person and therefore may themselves be regarded as being either directly or indirectly interested in the transaction, they abstained from attending the meeting.

** Mr Ne Chen Duen, an executive director, retired on 2 August 2007.

The Board also delegates certain functions to the various Board committees, namely, Audit, Nominating and Remuneration Committees. Each of these committees has its own terms of reference and reports its activities regularly to the Board. On 23 August 2007, the Board approved the recommendation by the Nominating Committee (“NC”) to change the composition of the Board Committees, in particular, each Board Committee shall have four members instead of three, and the Chairman of each Board Committee will be appointed on a 5-year rotational basis. This is to better facilitate the distribution of responsibilities amongst the directors as well as to enhance the overall effectiveness of the Board.

The Board is of the view that the contribution of each director should not be focused only on his attendance at Board and/or Committee meetings. A director’s contribution may extend beyond the confines of formal Board meetings, through sharing of views, advice, experience, and strategic networking relationships which would further the interests of the Company.

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BoaRd matteRs (continued)The Board’s Conduct of its Affairs (continued)

The Board is responsible for the overall strategy and direction of the Group; the Management closely monitors changes to regulations and accounting standards and the directors are informed of their disclosure obligations. Newly appointed directors are given briefings by Management on the Group’s business, directions and policies.

Changes to regulations and accounting standards are monitored closely by Management. Where regulatory changes have an important bearing on the Company’s or directors’ disclosure obligations, directors are briefed during Board meetings.

Board Composition and Balance

The Board currently comprises a majority of non-executive directors, with more than one-third independent directors. There are 10 Board members, three of whom are executive directors and seven are non-executive directors (inclusive of six independent directors). The Board considers its current size and members whose core competencies, qualifications, skills and experience are extensive and complementary, to be appropriate. The Board will examine its size and composition whenever circumstances require it. Mr Ne Chen Duen, an executive director, retired from the Board on 2 August 2007.

The independence of each director is reviewed annually by the Nominating Committee to ensure that there is a strong and independent element on the Board and that its size is appropriate to the scope and nature of the Group’s operations. No individual or smaller group of individuals dominate the Board’s decision-making process. The Nominating Committee has determined Mr Loh Soo Eng, to be an independent non-executive director. Three years have lapsed since Mr Loh ceased to be employed by the Company or any of its related companies in June 2004. As such, Mr Loh is no longer deemed to be non-independent under the Code of Corporate Governance.

Chairman and Managing Director

There is no separation of roles between the Chairman and the Managing Director (“MD”) in the Company as there is adequate accountability and transparency as reflected by the internal controls established within the Group. The Board is of the opinion that it is well balanced with a strong and independent group of non-executive directors.

As Chairman, Mr Cheng Wai Keung assists the Board in developing policies and strategies as well as providing leadership to the Board and ensuring that Board meetings are held when necessary and that Board members are provided with complete, adequate and timely information. As MD, he supervises the management of the business and affairs of the Group, reviews major acquisitions or disposals, investments, strategic plans and funding requirements and ensures that the Board’s decisions and strategies are properly and effectively carried out. The sustained growth of the Company under Mr Cheng’s leadership shows his ability to discharge the responsibilities of both roles effectively.

BoaRd Committees

nominating Committee

Board Membership

The NC comprises four members, namely, Mr Loh Soo Eng - Chairman of NC, Tan Sri Dato’ Mohamed Noordin bin Hassan, Mr Phua Bah Lee (all independent non-executive directors) and Mr Cheng Wai Keung.

The NC has adopted specific written terms of reference. The principal functions of the NC are to make recommendations to the Board for the appointment and re-appointment of directors to the Board and to review the independence of each director annually. The NC will review the composition of the Board from time to time and to search and identify suitable candidates with the right qualifications, expertise and experience. Each candidate will be evaluated based on his ability to enhance the board through his contributions in his area of expertise and to improve the Group’s business strategies, controls or corporate governance. Mr Paul Tong Hon To was appointed to the Board on 16 August 2007 as an independent non-executive director. As a new director, Mr Paul Tong Hon To will submit himself for re-election at the next Annual General Meeting (“AGM”) immediately following his appointment.

All directors are required to submit themselves for re-nomination and re-election at least once every three years. At least one-third of the directors retire at each AGM subject to re-election annually. Directors above the age of 70 are also required under the Companies Act to retire and offer themselves for re-appointment by the shareholders at every AGM.

Key information on the directors are set out on pages 29 to 32 of this Annual Report.


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BoaRd Committees (continued)

Board Performance

The NC’s evaluation of the performance of the Board as a whole will be conducted on an annual basis taking into account the level of participation and contribution of individual directors towards the Board’s effectiveness and competencies, strategic insight, financial literacy, business judgment, sense of accountability and maintenance of expertise relevant to the Group. The aim of the evaluation is to assess if each director continues to contribute effectively and demonstrate commitment to their respective roles.

Access to Information

As and when the need arises and prior to each meeting, the Board is provided with timely and adequate information to enable full deliberation of issues to be considered.

To ensure that the Board is able to fulfill its responsibilities, the Management provides the Board with periodic management reports, forecasts/budgets, financial statements and other relevant information of the Group.

The Board has independent access to the Management team and the Company Secretary at all times. The Board seeks independent advice as and when necessary to enable it to discharge its responsibilities effectively.

The Company Secretary attends all Board meetings and ensures that Board procedures are followed. The Company Secretary together with the Management team also ensure that the Company complies with all applicable statutory and regulatory rules.

RemUneRation matteRs

Remuneration Committee

The Remuneration Committee (“RC”) comprises four members, all of whom are independent non-executive directors. The RC members are Mr Lee Han Yang - Chairman of RC, Mr Boey Tak Hap, Tan Sri Dato’ Mohamed Noordin bin Hassan and Mr Loh Soo Eng.

The RC reviews the remuneration of directors and key executives of the Group and obtains advice on remuneration matters as and when required from human resource advisers or consultants within and outside the Group. No director is involved in deciding his own remuneration.

The RC makes recommendation on an appropriate framework of remuneration taking into account employment conditions within the industry and the Company’s performance to ensure that the package is competitive and sufficient to attract, retain and motivate key executives.

The Group’s remuneration policy comprises a fixed component (in the form of base salary) and a variable component that is linked to the Company and individual performance.

Directors who participate in Board Committees receive higher fees for the additional responsibilities. All directors’ fees are approved by shareholders at the Annual General Meeting of the Company before they are paid.


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RemUneRation matteRs (continued)

A breakdown (in percentage terms) of the directors’ remuneration for FY2007 are as follows:

Bonus, allowance & remuneration Bands Fees (%) Salary (%) Other Benefits (%)

$2,750,001 to $3,000,000 Cheng Wai Keung 34 66#

$2,500,001 to $2,750,000Edmund Cheng Wai Wing 34 66#

$500,001 to $750,000Lee Kim Wah 51 49^

$250,000 to $500,000Ne Chen Duen 3# 69 28#

Below $250,000Boey Tak Hap 100 – –Cheng Man Tak 100 – –Tan Sri Dato’ Mohamed Noordin bin Hassan 77# – 23#

Christopher Patrick Langley (retired on 26 Oct 2006) 100 – –Lee Han Yang 100 – –Loh Soo Eng 100 – –Phua Bah Lee 100 – –

# Includes fees, allowance and other benefits from DNP Holdings Berhad.^ Other benefits include the cost of the fair value of share options in accordance with FRS102 – Share Based Payment.

Instead of setting out the names of the top five key executives who are not directors of the Company, we have shown a Group-wide cross-section of executives’ remuneration (one of whom is related to the Managing Director) by number of employees within bands of $250,000. This gives a macro perspective of the remuneration pattern in the Group while maintaining confidentiality of employees’ remuneration:

range of remuneration No. of Key executives

Above $750,001 1$500,001 to $750,000 4$250,001 to $500,000 2

Other than share options granted to Mr Lee Kim Wah as set out below, no options were granted to the directors of the Company during the financial year. Options granted aggregate options since during the commencement of the aggregate financial year Scheme to �0.0�.2007 options No. of outstanding options exercise Options Options Options as atName of participants granted price ($) granted exercised expired �0.0�.2007

Directors of the Company

200� Share Option Scheme

Lee Kim Wah 120,000 1.81 720,000 – – 720,000

Loh Soo Eng – – 360,000 240,000 – 120,000


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aCCoUntaBilitY and aUdit

Accountability

Shareholders are provided with the Company’s performance, financial position and prospects on a quarterly basis, while periodic management reports of the Company and its businesses are furnished to the Board.

audit Committee

The Audit Committee (“AC”) comprises four members, all of whom are independent non-executive directors. The AC members are Mr Phua Bah Lee - Chairman of AC, Mr Lee Han Yang, Mr Boey Tak Hap and Mr Paul Tong Hon To.

Members of the AC have sufficient financial management expertise and experience to discharge its functions. It held five meetings in FY2007. The functions of the AC include the review of annual audit plan, internal audit process, the adequacy of internal controls and interested person transactions. The AC recommends to the Board the external auditors to be appointed or re-appointed taking into account the independence and objectivity of such external auditors as well as to review the scope, results and cost effectiveness of their audit procedures. The AC also reviews the quarterly and annual financial statements before submitting to the Board for approval.

The key function of the AC is to maintain a high standard of corporate governance. The AC has full access to and co-operation of the Management. The AC met with the internal and external auditors without the presence of the Management once during the year. Having reviewed the value of non-audit services by the external auditors to the Group, the AC is satisfied that the nature and extent of such services will not prejudice the independence and objectivity of the external auditors.

Internal Controls

The Group’s internal financial controls provide reasonable assurance that assets are safeguarded, proper accounting records are maintained, reliability of financial information and compliance with applicable laws and regulations. Regular management meetings are held to report and monitor the performance of each department.

The Board is satisfied that based on the information furnished to it and on its own observations, the internal controls (including financial, operational and compliance controls) and risk management processes are satisfactory for the nature and size of the Group’s operations and business.

Interested Person Transaction

The Company has established an internal policy in respect of any transactions with interested persons and has set out the procedures for review and approval of the Company’s interested person transactions (“IPT”). During FY2007, the AC reviewed the following IPT:-

interested Person transaction aggregate value of iPt

Irrevocable undertaking to accept the offer by Cazenove Asia Limited S$270,000,000 on behalf of USI Holdings Limited (the interested person) for shares in Winsor Properties Holdings Limited

The above IPT was approved by shareholders at the Extraordinary General Meeting held on 22 June 2007.

Internal Audit

The Company has adopted a set of internal controls which sets out approval limits for expenditure, investments and divestments and cheque signatory arrangements. The internal audit function of the Group is carried out by Messrs Kan & Co (“IA”) and its approach is consistent with the standards as required by the Institute of Internal Auditors. The IA reports their audit findings to the AC and Management.

The functions of the IA are to provide an objective opinion and assurance to the AC and Management as to the adequacy of the internal processes and controls, identify financial and operational risks and to recommend policies and plans for effective compliance control. The IA submits its plans and recommendations to the AC for approval. The AC reviews the activities of the IA on a quarterly basis and is satisfied that there are adequate internal controls in the Company.


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CommUniCation with shaReholdeRsShareholders are updated on the business and affairs of the Company through the quarterly release of the Company’s results. Material and price-sensitive information is publicly released by the Company via SGXNET on an immediate basis where required by the Singapore Exchange Securities Trading Limited (SGX-ST). The Company does not practise selective disclosure. Timely and detailed disclosure of pertinent corporate information is communicated via SGXNET and the Company’s website.

All shareholders receive the summary financial report and/or annual report of the Company and notice of the AGM. The notice (also advertised in the press) and results are published via SGXNET. The Company also conducts media and analysts briefing for its full-year results.

Shareholders are given the opportunity to raise relevant questions and communicate their views at the AGM. A shareholder can vote in person or appoint up to two proxies to attend and vote at the AGM in his/her absence.

dealings in seCURities The Company has adopted and implemented an internal guideline on share dealings in the Company’s securities in compliance with Rule 1207(18)(c) of the Listing Manual of the SGX-ST. All the officers of the Company are prohibited from dealing in securities of the Company while in possession of price-sensitive information. They are also prohibited from dealing in securities of the Company during the closed period, which is two weeks before the date of announcement of results for each of the first three quarters of the Company’s financial year and one month before the date of announcement of the full-year financial results.


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CONTENTS

Five-year financial summary

Directors’ report

Statement by directors

Independent auditors’ report to the members of Wing Tai Holdings Limited

Consolidated income statement

Balance sheets

Consolidated statement of changes in equity

Consolidated cash flow statement

Notes to the financial statements

Notice of annual general meeting

Shareholding statistics

Proxy form

Request form

42

434748

49

5051

53

55

112

115117119

financial reports

41

fivE-yEar fiNaNCial Summary

Year ended YearEnded YearEnded YearEnded YearEnded 30 June 2007 30June2006 30June2005 30June2004 30June2003 $’000 $’000 $’000 $’000 $’000

Revenue 981,634 889,258 281,569 274,455 455,441 Property 787,540 761,049 221,086 229,558 404,371 Retail 139,407 89,476 58,296 44,574 50,492 Investmentandothers 54,687 38,733 2,187 323 578

Profitbeforeincometax 499,906 156,905 26,939 8,930 1,688

Profitafterincometaxbut beforeminorityinterests 441,751 135,742 25,356 14,709 7,732

Profitattributabletoequity holdersoftheCompany 381,835 128,028 24,411 14,833 3,965

Shareholders’equity 1,489,349 1,149,881 1,021,453 946,963 923,470

Totalassets 3,133,185 2,745,606 2,576,312 2,248,131 2,258,792

Totalliabilitiesandminorityinterests 1,643,836 1,595,725 1,554,859 1,301,168 1,335,322

Earningspershare*(cents) 53.12 17.84 3.41 2.18 0.61

Nettangibleassetspershare(S$) 2.07 1.60 1.42 1.32 1.51

Grossdividends(cents) Cashdividends 8.00 6.00 3.00 2.00 1.00 Specialrightsdividends 25.00 – – – –

* Thenumberofsharesusedforthispurposeareasfollows:

’000

2007 718,8742006 717,4452005 715,9602004 681,5932003 646,469

42

dirECTOrS’ rEpOrT forthefinancialyearended30June2007

ThedirectorspresenttheirreporttothememberstogetherwiththeauditedfinancialstatementsoftheGroupforthefinancialyearended30June2007andthebalancesheetoftheCompanyat30June2007.

DirectorsThedirectorsoftheCompanyatthedateofthisreportare:

ChengWaiKeung (ChairmanandManagingDirector)

EdmundChengWaiWing (DeputyChairmanandDeputyManagingDirector)

BoeyTakHap

ChengManTak

TanSriDato’MohamedNoordinbinHassan

LeeHanYang

LeeKimWah

LohSooEng

PhuaBahLee

PaulTongHonTo (appointedon16August2007)

arrangements to enable Directors to acquire shares anD DebenturesExceptasdisclosedinthe“ShareOptions”sectionofthisreport,neitherattheendofnoratanytimeduringthefinancialyearwastheCompanyapartytoanyarrangement,whoseobjectwastoenablethedirectorsoftheCompanytoacquirebenefitsthroughtheacquisitionofsharesin,ordebenturesof,theCompanyoranyotherbodycorporate.

Directors’ interests in shares or Debentures(a) TheinterestsofthedirectorsholdingofficeattheendofthefinancialyearinthesharesandshareoptionsoftheCompanyand

relatedcorporationsaccordingtotheregisterofthedirectors’shareholdingswereasfollows:

Holdingsregistered Holdingsinwhichadirector inthenameofdirector isdeemedtohaveaninterest

Asat as at Asat as at Nameofdirectors 1July2006 30 June 2007 1July2006 30 June 2007

ordinary sharesChengWaiKeung – – 284,960,816 282,365,150EdmundChengWaiWing – – 282,381,150 282,381,150NeChenDuen(retiredon2August2007) – – 85,551,203 85,551,203LeeHanYang 300,000 300,000 – –LeeKimWah 634,000 634,000 – –LohSooEng 255,000 255,000 – –PhuaBahLee 340,000 250,000 – –

share optionsLeeKimWah 600,000 720,000 – –LohSooEng 120,000 120,000 – –

related corporationDnp holdings berhad

ordinary sharesLohSooEng 40,000 40,000 – –

share optionsChengWaiKeung 500,000 500,000 – –EdmundChengWaiWing 500,000 500,000 – –

43

Directors’ interests in shares or Debentures (continued)

(b) ByvirtueofSection7oftheCompaniesAct(Cap.50),ChengWaiKeungandEdmundChengWaiWing,whobyvirtueoftheirinterestofnotlessthan20%intheissuedcapitaloftheCompany,arealsodeemedtohaveaninterestinthesharesofthevarioussubsidiarycompaniesheldbytheCompany.

(c) Thereisnochangeinanyoftheabove-mentionedinterestbetween30June2007and21July2007exceptforNeChenDuen,whosedeemedinterestdecreasedfrom85,551,203asat30June2007to19,444,443asat21July2007.

Directors’ contractual benefitsSincetheendoftheprecedingfinancialyear,nodirectorhasreceivedorbecomeentitledtoreceiveabenefitbyreasonofacontractmadebytheCompanyorarelatedcorporationwiththedirectororwithafirmofwhichheisamemberorwithacompanyinwhichhehasasubstantialfinancialinterest,exceptasdisclosedinNote35tothefinancialstatements.

share options

(a) TheWingTaiHoldingsLimited(2001)ShareOptionScheme(the“2001Scheme”)

The2001SchemewasapprovedandadoptedbythemembersoftheCompanyatanExtraordinaryGeneralMeetingheldon31August2001.

TheShareOptionSchemeCommitteeoftheCompanyhasbeendesignatedasthecommitteeresponsiblefortheadministrationofthe2001Scheme.TheCommitteecomprisesthefollowingmembers:

ChengWaiKeung PaulTongHonTo

Pursuanttothe2001Scheme,thefull-timeexecutives(includingexecutivedirectors)oftheCompanyoranyofitssubsidiarycompaniesorassociatedcompaniesandnon-executivedirectorsoftheCompanyareeligibletoparticipateinthe2001Scheme.Inaddition,anexecutiveoranon-executivedirectorwhoisacontrollingshareholderorhisassociateasdefinedintheListingManualoftheSGX-STshallbeeligibletoparticipateinthe2001Schemeif(a)hisparticipationinthe2001Schemeand(b)theactualnumberofordinarysharesandthetermsoftheoptionstobegrantedhavebeenapprovedbyshareholdersoftheCompanyinseparateresolutionsforeachsuchperson.

Therewerenoshareoptionsgrantedtothecontrollingshareholdersortheirassociates.

Duringthefinancialyear,optionsweregrantedbytheCompanypursuanttothe2001Schemeinrespectof1,905,000ordinarysharesintheCompany,ofwhich120,000optionsweregrantedtoadirectorLeeKimWah,and1,785,000optionsweregrantedto75executivesoftheGroup.Therewerenoshareoptionsgrantedatadiscounttothemarketprice.

Noneoftheparticipantsofthe2001Schemereceived5%ormoreofthetotalnumberofoptionsavailableundertherespectiveSchemeexceptforthefollowing:

Optionsgranted Aggregateoptionssince duringthe commencementofthe financialyear Schemeto30.06.2007 Aggregateoptions Numberof Exercise Options Options outstandingasat

Nameofparticipants optionsgranted price($) granted exercised 30.06.2007

Directors of the company2001Scheme

LeeKimWah 120,000 1.81 720,000 – 720,000

LohSooEng – – 360,000 240,000 120,000


44

share options (continued)

(a) TheWingTaiHoldingsLimited(2001)ShareOptionScheme(the“2001Scheme”)(continued)

At30June2007,thefollowingoptionstosubscribefor4,549,000ordinarysharesintheCompanywereoutstanding:

Number Number Number Number Asat ofoptions ofoptions ofoptions ofoptions Asat Exercise

Dateofgrant 01.07.2006 granted exercised forfeited expired 30.06.2007 price($) Expirydate

2001Scheme02.11.2001 286,000 – 91,000 – – 195,000 0.678 01.11.201105.11.2002 276,500 – 61,500 – – 215,000 0.653 04.11.201228.11.2003 870,500 – 390,500 10,000 – 470,000 0.745 27.11.201319.11.2004 1,281,000 – 403,000 93,000 – 785,000 0.934 18.11.201430.09.2005 1,575,000 – 247,000 144,000 – 1,184,000 1.430 29.09.201505.09.2006 – 1,905,000 – 205,000 – 1,700,000 1.810 04.09.2016

total 4,289,000 1,905,000 1,193,000 452,000 – 4,549,000

(b) TheDNPHoldingsBerhad(“DNP”)Employees’ShareOptionScheme(the“ESOS”)

DNPHoldingsBerhad(“DNP”),asubsidiaryoftheCompany,implementedtheESOSapprovedbytheshareholdersofDNPatanExtraordinaryGeneralMeetingheldon11May2005.

Thedirectors(includingNon–Executivedirectors)andemployeesofDNPwhoasatthedateofofferareconfirmedwithatleastoneyearofcontinuousserviceinDNPanditssubsidiarycompaniesareeligibletoparticipateinthescheme.TheESOSwillallowgrantingofoptionstoalleligibledirectorsandemployeesbygivingthemtherightstosubscribefornewsharesofRM1.00each,subjecttothetermsandconditionsoftheby–lawsoftheESOS.

ThedetailsoftheESOShavebeendisclosedintheDirectors’ReportofDNP.

At30June2007,thefollowingoptionstosubscribefor5,768,500ordinarysharesinDNPwereoutstanding:

Number Number Number Number Asat ofoptions ofoptions ofoptions ofoptions Asat Exercise

Dateofgrant 01.07.2006 granted exercised forfeited expired 30.06.2007 price(RM) Expirydate

01.12.2005 4,830,000 – – 510,000 4,320,000 – 1.00 16.01.200701.12.2005 6,878,000 – 4,214,500 220,000 – 2,443,500 1.00 15.05.201531.01.2007 – 4,696,000 1,278,000 93,000 – 3,325,000 1.00 15.05.2015

total 11,708,000 4,696,000 5,492,500 823,000 4,320,000 5,768,500

Exceptfortheabove,nootheroptionsweregrantedbytheCompanyoranysubsidiarycompaniesduringthefinancialyearandtherewerenounissuedsharesunderoptionsattheendofthefinancialyear.


45

auDit committeeTheAuditCommitteeconsistsoffournon-executiveindependentdirectors.ThemembersoftheCommitteeare:

PhuaBahLee(Chairman)LeeHanYangBoeyTakHapPaulTongHonTo

TheAuditCommitteereviewedtheGroup’saccountingpoliciesandsystemofinternalcontrolsonbehalfoftheBoardofDirectorsandperformedthefunctionsspecifiedinSection201B(5)oftheCompaniesAct(Cap.50).Inperformingitsfunctions,theCommitteereviewed:

(a) theauditplansoftheCompany’sinternalandexternalauditorsandtheirevaluationofthesystemofinternalcontrolsarisingfromtheirauditexaminations;

(b) thescopeandresultsofinternalauditprocedures;and

(c) thequarterlyresultsandthefullyearconsolidatedfinancialstatementsoftheGroupforthefinancialyearended30June2007beforetheirsubmissiontotheBoardofDirectorsforapprovalandtheauditors’reportonthesefinancialstatements.

TheAuditCommitteehasnominatedPricewaterhouseCoopersforre-appointmentasauditorsoftheCompanyattheforthcomingAnnualGeneralMeeting.

auDitorsTheauditors,PricewaterhouseCoopers,haveexpressedtheirwillingnesstoacceptre-appointment.

Onbehalfofthedirectors

cheng Wai Keung eDmunD cheng Wai WingDirector Director

Singapore28September2007


46

Intheopinionofthedirectors,

(a) thebalancesheetoftheCompanyandtheconsolidatedfinancialstatementsoftheGroupassetoutonpages49to111aredrawnupsoastogiveatrueandfairviewofthestateofaffairsoftheCompanyandoftheGroupat30June2007andoftheresultsofthebusiness,changesinequityandcashflowsoftheGroupforthefinancialyearthenended;and

(b) atthedateofthisstatement,therearereasonablegroundstobelievethattheCompanywillbeabletopayitsdebtsasandwhentheyfalldue.

Onbehalfofthedirectors

cheng Wai Keung eDmunD cheng Wai WingDirector Director


STaTEmENT by dirECTOrS forthefinancialyearended30June2007

47

WehaveauditedtheaccompanyingfinancialstatementsofWingTaiHoldingsLimited(the“Company”)anditssubsidiarycompanies(the“Group”)setoutonpages49to111whichcomprisethebalancesheetsoftheCompanyandoftheGroupasat30June2007,andtheconsolidatedincomestatement,consolidatedstatementofchangesinequityandconsolidatedcashflowstatementoftheGroupforthefinancialyearthenended,andasummaryofsignificantaccountingpoliciesandotherexplanatorynotes.

Directors’ responsibilitY for the financial statementsTheCompany’sdirectorsareresponsibleforthepreparationandfairpresentationofthesefinancialstatementsinaccordancewiththeprovisionsoftheSingaporeCompaniesActandSingaporeFinancialReportingStandards.Thisresponsibilityincludesdesigning,implementingandmaintaininginternalcontrolrelevanttothepreparationandfairpresentationoffinancialstatementsthatarefreefrom material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and makingaccountingestimatesthatarereasonableinthecircumstances.

auDitor’s responsibilitYOurresponsibilityistoexpressanopiniononthesefinancialstatementsbasedonouraudit.WeconductedourauditinaccordancewithSingaporeStandardsonAuditing.ThoseStandardsrequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceastowhetherthefinancialstatementsarefreefrommaterialmisstatement.

Anaudit involvesperformingprocedures toobtainevidenceabout theamountsanddisclosures in thefinancialstatements.Theprocedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of thefinancialstatements,whetherduetofraudorerror.Inmakingthoseriskassessments,theauditorconsidersinternalcontrolrelevanttotheentity’spreparationandfairpresentationofthefinancialstatementsinordertodesignauditproceduresthatareappropriateinthecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessoftheentity’sinternalcontrol.Anauditalsoincludesevaluatingtheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesmadebydirectors,aswellasevaluatingtheoverallpresentationofthefinancialstatements.

Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.

opinion

Inouropinion,

(a) thebalancesheetoftheCompanyandtheconsolidatedfinancialstatementsoftheGroupareproperlydrawnupinaccordancewiththeprovisionsoftheSingaporeCompaniesAct(the“Act”)andSingaporeFinancialReportingStandardssoastogiveatrueandfairviewofthestateofaffairsoftheCompanyandoftheGroupasat30June2007,andtheresults,changesinequityandcashflowsoftheGroupforthefinancialyearendedonthatdate;and

(b) theaccountingandotherrecordsrequiredbytheActtobekeptbytheCompanyandbythosesubsidiarycompaniesincorporatedinSingaporeofwhichwearetheauditorshavebeenproperlykeptinaccordancewiththeprovisionsoftheAct.

pricewaterhousecoopersCertifiedPublicAccountants


iNdEpENdENT audiTOrS’ rEpOrT TO ThE mEmbErS Of wiNg Tai hOldiNgS limiTEd

48

Group Note 2007 2006 $’000 $’000

revenue 4 981,634 889,258

Costofsales (636,640) (664,863)

gross profit 344,994 224,395

Othergains–net 5 219,362 15,440

Expenses– Distribution (58,703) (40,370)– Administrative (69,928) (44,225)– Other (13,869) (45,120)

operating profit 421,856 110,120

Financecosts 8 (32,057) (40,297)Shareofprofitofassociatedandjointventurecompanies 110,107 87,082

profit before income tax 499,906 156,905

Incometaxexpense 9(a) (58,155) (21,163)

total profit 441,751 135,742

attributable to:equity holders of the company 381,835 128,028Minorityinterests 59,916 7,714

441,751 135,742earnings per share attributable to equity holders of the company (cents)Basic 10(a) 53.12 17.84Diluted 10(b) 53.03 17.81

CONSOlidaTEd iNCOmE STaTEmENT forthefinancialyearended30June2007

49

Group Company Note 2007 2006 2007 2006 $’000 $’000 $’000 $’000

assetscurrent assetsCashandcashequivalents 11 410,790 308,538 129,138 168,425Derivativefinancialinstruments 12 735 2,208 – 1,874Tradeandotherreceivables 13 100,673 76,686 383,324 383,226Inventories 14 24,985 23,717 – –Developmentproperties 15 987,359 1,048,276 – –Othercurrentassets 16 36,856 42,789 7,408 10,792 1,561,398 1,502,214 519,870 564,317

non–current assetsAvailable–for–salefinancialassets 17 33,183 7,774 3,793 3,793Tradeandotherreceivables 18 248,528 238,701 586,567 660,293Investmentsinassociatedcompanies 19 431,586 371,749 – –Investmentsinjointventurecompanies 20 111,126 89,870 – –Investmentsinsubsidiarycompanies 21 – – 241,300 253,392Investmentproperties 22 574,219 417,970 82,000 –Property,plantandequipment 23 173,145 117,328 10,935 90,533 1,571,787 1,243,392 924,595 1,008,011total assets 3,133,185 2,745,606 1,444,465 1,572,328

liabilitiescurrent liabilitiesTradeandotherpayables 24 140,849 104,786 175,510 212,516Currentincometaxliabilities 26,134 11,732 2,357 2,275Derivativefinancialinstruments 12 10,063 357 10,019 –Borrowings 25 190,497 246,368 – 50,000 367,543 363,243 187,886 264,791

non–current liabilitiesBorrowings 25 864,355 861,347 275,000 275,000Deferredincometaxliabilities 9 52,425 7,444 158 158Othernon–currentliabilities 27 184,680 251,695 55,037 77,029 1,101,460 1,120,486 330,195 352,187total liabilities 1,469,003 1,483,729 518,081 616,978

net assets 1,664,182 1,261,877 926,384 955,350

equitY capital and reserves attributable to equity holders of the companySharecapital 28 688,316 687,193 688,316 687,193Otherreserves 29 87,484 204,874 (1,622) 83,782Retainedearnings 30 713,549 257,814 239,690 184,375 1,489,349 1,149,881 926,384 955,350minority interests 174,833 111,996 – –

total equity 1,664,182 1,261,877 926,384 955,350

balaNCE ShEETS asat30June2007

50

AttributabletoequityholdersoftheCompany

Share Other Retained Minority Total Note capital reserves earnings Total interests equity $’000 $’000 $’000 $’000 $’000 $’000

2007beginning of financial year, as previously reported 687,193 204,874 257,814 1,149,881 111,996 1,261,877EffectofadoptingFRS40 3 – (127,491) 108,399 (19,092) (213) (19,305)

Asrestated 687,193 77,383 366,213 1,130,789 111,783 1,242,572

Fairvaluegainsonavailable–for–salefinancialassets – 11,556 – 11,556 11,463 23,019Cashflowhedges – (12,225) – (12,225) – (12,225)Currencytranslationdifferences – (10,884) – (10,884) 3,171 (7,713)Revaluationgainonproperty,plantandequipment – 1,475 – 1,475 41 1,516Shareofcapitalreservesofassociatedandjointventurecompanies – 18,941 – 18,941 841 19,782

Netgainsrecogniseddirectlyinequity – 8,863 – 8,863 15,516 24,379Netprofit – – 381,835 381,835 59,916 441,751

Totalrecognisedgains – 8,863 381,835 390,698 75,432 466,130

Costofshare–basedpayment – 1,238 – 1,238 143 1,381Issueofsharesonexerciseofshareoptions 28 1,123 – – 1,123 – 1,123Issueofsharesbysubsidiarycompanytominorityshareholders – – – – 2,402 2,402Ordinarydividendspaid 26 – – (34,499) (34,499) – (34,499)Liquidationofsubsidiarycompany – – – – (6,486) (6,486)Acquisitionofsubsidiarycompany – – – – 8,391 8,391Acquisitionofadditionalinterestinsubsidiarycompanies – – – – (16,832) (16,832)

end of financial year 688,316 87,484 713,549 1,489,349 174,833 1,664,182

CONSOlidaTEd STaTEmENT Of ChaNgES iN EquiTy forthefinancialyearended30June2007

51

AttributabletoequityholdersoftheCompany

Share Share Other Retained Minority Total capital premium reserves earnings Total interests equity $’000 $’000 $’000 $’000 $’000 $’000 $’000

2006beginning of financial year, as previously reported 179,027 501,600 193,470 141,331 1,015,428 (19,960) 995,468EffectofadoptingFRS28 – – – 6,025 6,025 – 6,025EffectofadoptingFRS102 – – 466 (466) – – –

Asrestated 179,027 501,600 193,936 146,890 1,021,453 (19,960) 1,001,493EffectofadoptingFRS39 – – (5,922) – (5,922) – (5,922)

179,027 501,600 188,014 146,890 1,015,531 (19,960) 995,571

Cashflowhedges – – 8,084 – 8,084 – 8,084Currencytranslationdifferences – – (12,646) – (12,646) (1,006) (13,652)Revaluationgainoninvestmentproperty andproperty,plantandequipment – – 5,178 – 5,178 (646) 4,532Shareofcapitalreservesofassociated andjointventurecompanies – – 11,091 – 11,091 4,784 15,875Realisationofreserveuponsaleof investmentpropertyandproperty, plantandequipment – – 8,910 121 9,031 – 9,031

Netgainsrecogniseddirectlyinequity – – 20,617 121 20,738 3,132 23,870Netprofit – – – 128,028 128,028 7,714 135,742

Totalrecognisedgains – – 20,617 128,149 148,766 10,846 159,612

Costofshare–basedpayment – – 956 – 956 – 956Issueofsharesonexerciseof shareoptions 771 1,082 – – 1,853 – 1,853TransfertoShareCapitalupon commencementofCompanies (Amendment)Act2005 507,395 (502,682) (4,713) – – – –Issueofsharesbysubsidiarycompany tominorityshareholder – – – – – 400 400Dividendspaidbysubsidiarycompany tominorityshareholders – – – – – (5,590) (5,590)Ordinarydividendspaid – – – (17,225) (17,225) – (17,225)Liquidationofsubsidiarycompany – – – – – (16,280) (16,280)Acquisitionofsubsidiarycompany – – – – – 142,580 142,580

end of financial year 687,193 – 204,874 257,814 1,149,881 111,996 1,261,877

Ananalysisofthemovementsineachcategorywithin“Otherreserves”ispresentedinNote29.

CONSOlidaTEd STaTEmENT Of ChaNgES iN EquiTy forthefinancialyearended30June2007

52

Group Note 2007 2006 $’000 $’000

cash flows from operating activitiesTotalprofit 441,751 135,742Adjustmentsfor: Incometaxexpense 58,155 21,163

Depreciationofproperty,plantandequipment 8,331 5,069Impairmentonproperty,plantandequipment – 3,170Fairvalue(gains)/lossesoninvestmentproperties (189,033) 3,007Revaluationlossonproperty,plantandequipment 241 1,711Fairvaluegainsonderivativefinancialinstruments (1,046) –Negativegoodwillarisingfromadditionalsharesinasubsidiarycompany (7,695) (1,636)Gainondisposalofproperty,plantandequipment (713) (491)Gainondisposalofsubsidiarycompany (742) –Gainondisposalofassociatedcompany (4,024) –Interestincome (12,218) (8,040)Interestexpense 32,057 40,297Shareofprofitofassociatedandjointventurecompanies (110,107) (87,082)Shareoptionsexpense 1,381 956Allowanceforforeseeablelossesondevelopmentproperties – 31,211Translationdifference 4,072 2,938

Operatingcashflowbeforeworkingcapitalchanges 220,410 148,015

Changesinoperatingassetsandliabilities:Balanceswithassociatedandjointventurecompanies 4,056 (1,564)Developmentproperties 100,598 10,513Inventories (1,268) 13,383Debtors (29,432) (23,215)Creditors (6,789) (32,640)

Cashgeneratedfromoperations 287,575 114,492

Incometaxrefunded/(paid) 34 (1,632)

net cash generated from operating activities 287,609 112,860

cash flows from investing activitiesAcquisitionofsubsidiarycompany,netofcashacquired 11 23,762 4,343Acquisitionofadditionalinterestinsubsidiarycompanies 11 (16,321) –Investmentinjointventurecompany (300) –Purchasesofproperty,plantandequipment (12,255) (5,830)Proceedsfromdisposalofproperty,plantandequipment 1,052 2,877Proceedsfromdisposalofinvestmentproperty – 230,000Proceedsfromdisposalofsubsidiarycompany 11 2,935 –Purchasesofavailable–for–salefinancialassets (2,340) (3,921)Advancementoftheloansfromassociatedandjointventurecompanies 1,493 907Dividendsreceived 10,675 9,735Interestreceived 12,448 11,097

net cash generated from investing activities 21,149 249,208

CONSOlidaTEd CaSh flOw STaTEmENT forthefinancialyearended30June2007

53

Group Note 2007 2006 $’000 $’000

cash flows from financing activitiesProceedsfromissueofordinaryshares 1,123 1,853Proceedsfromissueofordinarysharesbysubsidiarycompanytominorityshareholders 2,402 400(Repayment)/advancementoftheloansfromminorityshareholders (78,380) 151Repaymentofborrowings (52,863) (124,284)Dividendspaidtoshareholders (34,499) (17,225)Dividendspaidtominorityshareholders – (5,590)Interestpaid (44,413) (46,948)

net cash used in financing activities (206,630) (191,643)

net increase in cash and cash equivalents 102,128 170,425Cashandcashequivalentsatbeginningoffinancialyear 308,538 138,075Effectsofforeignexchangeratechangesoncashandcashequivalents 124 38

cash and cash equivalents at end of financial year 11 410,790 308,538

CONSOlidaTEd CaSh flOw STaTEmENT forthefinancialyearended30June2007

54

Thesenotesformanintegralpartofandshouldbereadinconjunctionwiththeaccompanyingfinancialstatements.

1. generalTheCompanyisincorporatedanddomiciledinSingaporeandislistedontheSingaporeExchange.Theaddressofitsregisteredofficeis3KillineyRoad,#10-01WinslandHouseI,Singapore239519.

Theprincipalactivityof theCompany is thatofan investmentholdingcompany.Theprincipalactivitiesof theCompany’ssubsidiarycompaniesareshowninNote37.

2. significant accounting policies 2.1 Basisofpreparation

ThefinancialstatementshavebeenpreparedinaccordancewithSingaporeFinancialReportingStandards(“FRS”).Thefinancial statements have been prepared under the historical cost convention, except as disclosed in the accountingpoliciesbelow.

Thepreparationoffinancialstatements inconformitywithFRS requiresmanagement toexercise its judgement in theprocessofapplyingtheGroup’saccountingpolicies.Italsorequirestheuseofaccountingestimatesandassumptionsthataffectthereportedamountsofassetsandliabilitiesanddisclosureofcontingentassetsandliabilitiesatthedateofthefinancialstatements,andthereportedamountsofrevenuesandexpensesduringthefinancialyear.Althoughtheseestimatesarebasedonmanagement’sbestknowledgeofcurrenteventsandactions,actualresultsmayultimatelydifferfromthoseestimates.

Interpretations and amendments to published standards effective in 2006

On1July2006,theGroupadoptedtheneworrevisedFRSandInterpretationstoFRS(INTFRS)thataremandatoryforapplicationfromthatdate.ChangestotheGroup’saccountingpolicieshavebeenmadeasrequired,inaccordancewiththerelevanttransitionalprovisionsintherespectiveFRSandINTFRS.

ThefollowingaretheFRSandINTFRSthatarerelevanttotheGroup:

FRS19(Amendment) Employee BenefitsFRS21(Amendment) The Effects of Changes in Foreign Exchange RatesFRS32(Amendment) Financial Instruments: Disclosure and PresentationFRS39(Amendment) Financial Instruments: Recognition and MeasurementINTFRS104 Determining whether an Arrangement contains a Lease

TheGrouphasearlyadoptedFRS40Investment Propertyon1July2006.

TheadoptionoftheaboveFRSorINTFRSdidnotresultinanysubstantialchangestotheGroup’saccountingpolicies,exceptfortheadoptionofFRS40 Investment Property,theeffectofwhichisdisclosedinNote3.

2.2 Revenuerecognition

RevenuefortheGroupcomprisesthefairvalueoftheconsiderationreceivedorreceivableforthesaleofpropertiesandgoods,rentalincomefromoperatingleasesandinvestmentpropertiesandrenderingofservices,netofgoodsandservicestax,rebatesanddiscounts,andaftereliminatingsaleswithintheGroup.

Revenueisrecognisedasfollows:

(a) Sale of goods

RevenuefromsalesofgoodsisrecognisedwhenaGroupentityhasdeliveredtheproductstothecustomer,thecustomerhasacceptedtheproductsandcollectibilityoftherelatedreceivablesisreasonablyassured,exceptforincomefromsaleofdevelopmentproperties,whichisrecognisedusingthepercentageofcompletionmethodasdisclosedinNote2.8.

(b) Rendering of services

Revenuefromrenderingofservicesisrecognisedovertheperiodinwhichtheservicesarerendered,byreferencetocompletionofthespecifictransactionassessedonthebasisoftheactualserviceprovidedasaproportionofthetotalservicestobeperformed.

NOTES TO ThE fiNaNCial STaTEmENTS forthefinancialyearended30June2007

55


2. significant accounting policies (continued)

2.2 Revenuerecognition(continued)

(c) Interest income

Interestincomeisrecognisedonatime-proportionbasisusingtheeffectiveinterestmethod.

(d) Dividend income

Dividendincomeisrecognisedwhentherighttoreceivepaymentisestablished.

(e) Rental income

Rentalincomefromoperatingleasesoninvestmentpropertiesisrecognisedonastraight-linebasisovertheleaseterm.

(f) Management fee

Managementfeecompriseschargesforthemanagementandmaintenanceofproperties,financeandadministrationfees.

Revenuefrommanagementfeeisrecognisedovertheperiodinwhichthemanagementservicesarerendered.

2.3 Groupaccounting

(a) Subsidiary companies

SubsidiarycompaniesareentitiesoverwhichtheGrouphaspowertogovernthefinancialandoperatingpolicies,generallyaccompanyingashareholdingofmorethanonehalfofthevotingrights.TheexistenceandeffectofpotentialvotingrightsthatarecurrentlyexercisableorconvertibleareconsideredwhenassessingwhethertheGroupcontrolsanotherentity.

Thepurchasemethodofaccounting isused toaccount for theacquisitionofsubsidiarycompanies.Thecostofanacquisitionismeasuredasthefairvalueoftheassetsgiven,equity instrumentsissuedor liabilitiesincurredorassumedatthedateofexchange,pluscostsdirectlyattributabletotheacquisition.Identifiableassetsacquiredandliabilitiesandcontingentliabilitiesassumedinabusinesscombinationaremeasuredinitiallyattheirfairvaluesonthedateofacquisition,irrespectiveoftheextentofanyminorityinterest.PleaserefertoNote2.4fortheaccountingpolicyongoodwillonacquisitionofsubsidiarycompanies.

Subsidiarycompaniesareconsolidatedfromthedateonwhichcontrol istransferredtotheGroup.Theyarede-consolidatedfromthedateonwhichcontrolceases.

In preparing the consolidated financial statements, transactions, balances and unrealised gains on transactionsbetween group companies are eliminated. Unrealised losses are also eliminated but considered an impairmentindicatoroftheassettransferred.AccountingpoliciesofsubsidiarieshavebeenchangedwherenecessarytoensureconsistencywiththeaccountingpoliciesadoptedbytheGroup.

Minorityinterestisthatpartofthenetresultsofoperationsandofnetassetsofasubsidiarycompanyattributableto interestswhicharenotowneddirectlyor indirectlybytheGroup. It ismeasuredattheminorities’shareofthefairvalueofthesubsidiarycompanies’identifiableassetsandliabilitiesatthedateofacquisitionbytheGroupandtheminorities’shareofchanges inequitysincethedateofacquisition,exceptwhenthe lossesapplicable to theminority in a subsidiary company exceed the minority interest in the equity of that subsidiary company. In suchcases,theexcessandfurtherlossesapplicabletotheminorityareattributedtotheequityholdersoftheCompany,unlesstheminorityhasabindingobligationto,andisableto,makegoodthelosses.Whenthatsubsidiarycompanysubsequentlyreportsprofits,theprofitsapplicabletotheminorityareattributedtotheequityholdersoftheCompanyuntiltheminority’sshareoflossespreviouslyabsorbedbytheequityholdersoftheCompanyhasbeenrecovered.

PleaserefertoNote2.5fortheCompany’saccountingpolicyoninvestmentsinsubsidiarycompaniesintheseparatefinancialstatementsoftheCompany.

56


2.3 Groupaccounting(continued)

(b) Transactions with minority interests

TheGroupappliesapolicyoftreatingtransactionswithminorityinterestsastransactionswithpartiesexternaltotheGroup.Disposalstominorityinterests,whichresultingainsandlossesfortheGroup,arerecordedintheincomestatement.Thedifferencebetweenanyconsiderationpaidtominorityinterestsforpurchasesofadditionalequityinterestinasubsidiarycompanyandtheincrementalshareofthecarryingvalueofthenetassetsofthesubsidiarycompanyisrecognisedasgoodwill.

(c) Associated and joint venture companies

Associated companies are entities over which the Group has significant influence, but not control, generallyaccompanyingashareholdingofbetweenandincluding20%and50%ofthevotingrights.JointventurecompaniesareentitiesoverwhichtheGrouphascontractualarrangementstojointlysharethecontrolovertheeconomicactivityoftheentitieswithoneormoreparties.

Investmentsinassociatedandjointventurecompaniesareaccountedforintheconsolidatedfinancialstatementsusingtheequitymethodofaccounting.Investmentsinassociatedandjointventurecompaniesintheconsolidatedbalancesheetincludegoodwill(netofaccumulatedamortisation)identifiedonacquisition,whereapplicable.PleaserefertoNote2.4fortheGroup’saccountingpolicyongoodwill.

Investmentsinassociatedandjointventurecompaniesareinitiallyrecognisedatcost.Thecostofanacquisitionismeasuredatthefairvalueoftheassetsgiven,equityinstrumentsissuedorliabilitiesincurredorassumedatthedateofexchange,pluscostsdirectlyattributabletotheacquisition.

Inapplyingtheequitymethodofaccounting,theGroup’sshareofitsassociatedandjointventurecompanies’post-acquisition profits or losses is recognised in the income statement and its share of post-acquisition movementsin reserves is recognised inequitydirectly.Thesepost-acquisitionsmovementsareadjustedagainst thecarryingamountoftheinvestments.Theamountsusedforequityaccountingarebasedonthemostrecentauditedfinancialstatementsof theassociatedand jointventurecompanies,andwhere theaccountingperiod isnotco-terminouswiththatoftheGroup,referenceismadetothemostrecentauditedormanagementstatementsofthecompaniesconcerned,madeuptodatesnotmorethanthreemonthspriortotheendofthefinancialyearoftheGroup.

WhentheGroup’sshareoflossesinanassociatedcompanyorjointventurecompanyequalsorexceedsitsinterestintheassociatedorjointventurecompany,includinganyotherunsecuredreceivables,theGroupdoesnotrecognisefurtherlosses,unlessithasincurredobligationsormadepaymentsonbehalfoftheassociatedcompanyorjointventurecompany.

Inapplyingtheequitymethodofaccounting,unrealisedgainsontransactionsbetweentheGroupanditsassociatedandjointventurecompaniesareeliminatedtotheextentoftheGroup’sinterestintheassociatedandjointventurecompanies.Unrealisedlossesarealsoeliminatedunlessthetransactionprovidesevidenceofanimpairmentoftheassettransferred.AccountingpolicesofassociatedandjointventurecompanieshavebeenchangedwherenecessarytoensureconsistencywiththeaccountingpoliciesadoptedbytheGroup.

PleaserefertoNote2.5fortheCompany’saccountingpolicyoninvestmentsinassociatedandjointventurecompanies.


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2.4 Goodwill

Goodwillrepresentstheexcessofthecostofacquisitionofsubsidiarycompanies,associatedcompaniesorjointventurecompaniesoverthefairvalueoftheGroup’sshareoftheidentifiablenetassetsoftheacquiredsubsidiarycompanies,associatedcompaniesorjointventurecompaniesatthedateofacquisition.Goodwillonacquisitionofsubsidiarycompaniesoccurringonorafter1January2001isincludedinintangibleassets.Goodwillonacquisitionofassociatedandjointventurecompaniesoccurringonorafter1January2001isincludedinthecarryingamountofinvestmentsinassociatedandjointventurecompaniesrespectively.Goodwillonacquisitionthatoccurredpriorto1January2001hasbeentakeninfulltoretainedearnings;suchgoodwillhasnotbeenretrospectivelycapitalisedandamortised.

Goodwill foracquisitionspost1January2005 isdeterminedafterdeductingtheGroup’sshareof their identifiablenetassetsandcontingentliabilities.From1January2005,goodwillrecognisedasintangibleassetistestedatleastannuallyforimpairmentandcarriedatcostlessaccumulatedimpairmentlosses(Note2.10).

Gainsandlossesonthedisposalofsubsidiarycompanies,associatedcompaniesandjointventurescompaniesincludethecarryingamountofgoodwillrelatingtotheentitysoldbutexcludegoodwillpreviouslytakentoretainedearnings(pre-January2001acquisition).Suchgoodwillpreviouslyadjustedagainstretainedearningsarenotrecognisedintheincomestatement.

2.5 Investmentsinsubsidiarycompanies,associatedcompaniesandjointventurecompanies

Investments in subsidiary companies, associated companies and joint ventures companies are stated at cost lessimpairmentlosses(Note2.10)intheCompany’sbalancesheet.

Ondisposalofinvestmentsinsubsidiarycompanies,associatedcompaniesandjointventurescompanies,thedifferencebetweennetdisposalproceedsandthecarryingamountoftheinvestmentistakentotheincomestatement.

2.6 Property,plantandequipment

(a) Measurement

(i) Land and buildings

Landandbuildingsareinitiallyrecordedatcost.

Freeholdand999-yearleaseholdlandaresubsequentlystatedatfairvaluelessaccumulatedimpairmentlosses(Note2.10).Buildingsandleaseholdlandaresubsequentlystatedatfairvaluelessaccumulateddepreciationandaccumulatedimpairmentlosses(Note2.10).Propertiesunderdevelopmentarepropertiesbeingconstructedordevelopedandarecarriedatcostlessaccumulatedimpairmentlossesuntilconstructionordevelopmentiscompleted.

Fairvaluesoflandandbuildingsaredeterminedbyanindependentprofessionalvalueronceeverythreeyearsandwhenevertheircarryingamountsarelikelytodiffermateriallyfromtheirfairvalues.Whenanassetisrevalued,anyaccumulateddepreciationatthedateofrevaluationiseliminatedagainstthegrosscarryingamountoftheasset.Thenetamountisthenrestatedtotherevaluedamountoftheasset.

Increasesincarryingamountarisingfromrevaluationarecreditedtotheassetrevaluationreserve,unlesstheyoffsetpreviousdecreasesinthecarryingamountofthesameasset,inwhichcase,theyarecreditedtotheincomestatement.Decreasesincarryingamountsthatoffsetpreviousincreasesofthesameassetarechargedagainsttheassetrevaluationreserve.Allotherdecreasesincarryingamountsarechargedtotheincomestatement.

(ii) Other property, plant and equipment

Allotheritemsofproperty,plantandequipmentareinitiallyrecognisedatcostandsubsequentlycarriedatcostlessaccumulateddepreciationandaccumulatedimpairmentlosses(Note2.10).


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2.6 Property,plantandequipment(continued)

(a) Measurement (continued)

(iii) Components of cost

Thecostofanitemofproperty,plantandequipmentincludesitspurchasepriceandanycostthatisdirectlyattributabletobringingtheassettothelocationandconditionnecessaryforittobecapableofoperatinginthemannerintendedbymanagement.Theprojectedcostofdismantlement,removalorrestorationisalsoincludedaspartofthecostofproperty,plantandequipmentiftheobligationforthedismantlement,removalorrestorationisincurredasaconsequenceofacquiringorusingtheasset.

(b) Depreciation

Freeholdand999-yearleaseholdlandandpropertiesunderdevelopmentarenotdepreciated.Depreciationonotheritems of property, plant and equipment is calculated using the straight-line method to allocate their depreciableamountsovertheirestimatedusefullives.Theannualdepreciationratesareasfollows:

Leaseholdlandandbuildings 1-3%orovertheremainingleaseperiod,whicheverisshorterMotorvehicles 20%Officeequipment 10-33%Furnitureandfittings 10%orovertheremainingleaseperiod,whicheverisshorter

Theresidualvaluesandusefullivesofproperty,plantandequipmentarereviewed,andadjustedasappropriate,ateachbalancesheetdate.Theeffectsofanyrevisionoftheresidualvaluesandusefullivesareincludedintheincomestatementforthefinancialyearinwhichthechangesarise.

(c) Subsequent expenditure

Subsequentexpenditurerelatingtoproperty,plantandequipmentthathasalreadybeenrecognisedisaddedtothecarryingamountoftheassetonlywhenitisprobablethatfutureeconomicbenefitsassociatedwiththeitemwillflowtotheGroupandthecostoftheitemcanbemeasuredreliably.Othersubsequentexpenditureisrecognisedasrepairandmaintenanceexpenseintheincomestatementduringthefinancialyearinwhichitisincurred.

(d) Disposal

Ondisposalofan itemofproperty,plantandequipment, thedifferencebetween thenetdisposalproceedsanditscarryingamount is taken to the incomestatement.Anyamount in revaluation reserve relating to thatasset istransferredtoretainedearningsdirectly.

2.7 Investmentproperties

InvestmentpropertiesfortheGroupareheldforlong-termrentalyieldsandarenotoccupiedsubstantiallybytheGroup.

Investmentpropertiesarestatedatfairvalueandchangesinfairvalueoftheinvestmentpropertiesaretakentotheincomestatementintheperiodinwhichthechangesarise.Thefairvalueoftheinvestmentpropertiesreflectthemarketconditionsatyear-end.

Ifaninvestmentpropertybecomessubstantiallyowner-occupied,itisreclassifiedasproperty,plantandequipmentanditsfairvalueatthedateofreclassificationbecomesitscostforaccountingpurposes.Propertythatisbeingconstructedordevelopedfor futureuseas investmentproperty isclassifiedaspropertiesunderdevelopmentuntildevelopment iscompleted,atwhichtimeitisreclassifiedandaccountedforasinvestmentproperty.

Ondisposalofaninvestmentproperty,thedifferencebetweenthenetdisposalproceedsandcarryingamountistakentotheincomestatement.


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2.8 Developmentproperties

Development properties are stated at cost plus attributable profits, less foreseeable losses, less progress paymentsreceivedandreceivable.Anallowanceismadewheretheestimatednetrealisablevalueofthedevelopmentpropertieshasfallenbelowtheircarryingvalue.

Costincludescostoflandandotherdirectandrelatedexpenditure,includinginterestonborrowings,incurredindevelopingtheproperties.Interestandotherrelatedexpenditurearecapitalisedasandwhentheactivitiesthatarenecessarytogettheassetreadyforitsintendeddevelopmentareinprogress.

Theinterestonborrowingscapitalisedisarrivedatbyreference,whereappropriate,totheactualratepayableonborrowingsfordevelopmentpurposes,andwithregardtothatpartof thedevelopmentcostfinancedoutofgeneral funds,at theaverageratepaidonfundingtheassetsfinancedbytheGroup.

Wheredevelopmentpropertiesaretenanted,andredevelopmentcannotcommenceuntilexistingtenancieshaveended,rentalincomeissetoffagainstoverheadexpenditurecapitalisedaspartofthecostoftheproperties.

Profit on the sale of properties under development is recognised in the financial statements using the percentage ofcompletionmethodbasedonthestageofcompletionascertifiedbythearchitectsorquantitysurveyorsfortheindividualunits sold. Losses are provided for in full as soon as they are foreseeable. Significant assumptions are required indetermining thepercentageofcompletion, the totalestimateddevelopmentcostsand theestimated total revenue. Inmakingtheassumptions,theGroupevaluatesthembyrelyingonpastexperienceandtheworkofspecialists.RevenuefromsaleofdevelopmentpropertiesisdisclosedinNote4.

2.9 Propertiesheldforsale

Propertiesheldforsalearestatedatthelowerofcostandestimatednetrealisablevalue.

2.10Impairmentofnon-financialassets

(a) Goodwill

Goodwillistestedannuallyforimpairment,aswellaswhenthereisanyindicationthatthegoodwillmaybeimpaired.Forthepurposeofimpairmenttestingofgoodwill,goodwillisallocatedtoeachoftheGroup’scashgeneratingunits(“CGU”)expectedtobenefitfromsynergiesarisingfromthebusinesscombination.

AnimpairmentlossisrecognisedwhenthecarryingamountofaCGU,includingthegoodwill,exceedstherecoverableamountofaCGU.RecoverableamountofaCGUisthehigheroftheCGU’sfairvaluelesscosttosellandvalueinuse.ThetotalimpairmentlossofaCGUisallocatedfirsttoreducethecarryingamountofgoodwillallocatedtotheCGUandthentotheotherassetsoftheCGUpro-rataonthebasisofthecarryingamountofeachassetintheCGU.

Impairmentlossongoodwillisrecognisedintheincomestatementandisnotreversedinasubsequentperiod.

(b) Property, plant and equipmentInvestments in subsidiary companies, associated companies and joint venture companies

Property,plantandequipmentandinvestmentsinsubsidiarycompanies,associatedcompaniesandjointventurecompaniesarereviewedforimpairmentwheneverthereisanyindicationthattheseassetsmaybeimpaired.Ifanysuchindicationexists,therecoverableamount(i.e.thehigherofthefairvaluelesscosttosellandvalueinuse)oftheassetisestimatedtodeterminetheamountofimpairmentloss.

Forthepurposeofimpairmenttestingoftheseassets,recoverableamountisdeterminedonanindividualassetbasisunlesstheassetdoesnotgeneratecashflowsthatarelargelyindependentofthosefromotherassets.Ifthisisthecase,recoverableamountisdeterminedfortheCGUtowhichtheassetbelongs.

Iftherecoverableamountoftheasset(orCGU)isestimatedtobelessthanitscarryingamount,thecarryingamountoftheasset(orCGU)isreducedtoitsrecoverableamount.Theimpairmentlossisrecognisedintheincomestatementunlesstheassetiscarriedatrevaluedamount,inwhichcase,suchimpairmentlossistreatedasarevaluationdecrease.PleaserefertoNote2.6forthetreatmentofrevaluationdecrease.


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2.10Impairmentofnon-financialassets (continued)

(b) Property, plant and equipment Investments in subsidiary companies, associated companies and joint venture companies (continued)

An impairment loss for an asset other than goodwill is reversed if, and only if, there has been a change in theestimatesusedtodeterminetheassets’recoverableamountsincethelastimpairmentlosswasrecognised.Thecarryingamountofanassetotherthangoodwillisincreasedtoitsrevisedrecoverableamount,providedthatthisamountdoesnotexceedthecarryingamountthatwouldhavebeendetermined(netofamortisationordepreciation)hadno impairment lossbeen recognised for theasset inprioryears.A reversalof impairment loss foranassetotherthangoodwillisrecognisedintheincomestatement,unlesstheassetiscarriedatrevaluedamount,inwhichcase,suchreversalistreatedasarevaluationincrease.However,totheextentthatanimpairmentlossonthesamerevaluedassetwaspreviouslyrecognisedintheincomestatement,areversalofthatimpairmentisalsorecognisedintheincomestatement.

2.11Financialassets

(a) Classification

TheGroupclassifiesitsfinancialassetsinthefollowingcategories:loansandreceivablesandavailable-for-sale.Theclassificationdependsonthepurposeforwhichtheassetswereacquired.Managementdeterminestheclassificationofitsfinancialassetsatinitialrecognitionandre-evaluatesthisdesignationateveryreportingdate.

(i) Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are notquotedinanactivemarket.Theyareincludedincurrentassets,exceptthosematuringmorethan12monthsafterthebalancesheetdatewhichareclassifiedasnon-currentassets.Loansandreceivablesareclassifiedwithintradeandotherreceivablesonthebalancesheet.

(ii) Available-for-sale financial assets

Available-for-salefinancialassetsarenon-derivativesthatareeitherdesignatedinthiscategoryornotclassifiedinanyoftheothercategories.Theyareincludedinnon-currentassetsunlessmanagementintendstodisposeoftheassetswithin12monthsafterthebalancesheetdate.

(b) Recognition and derecognition

Regularpurchasesandsalesofinvestmentsarerecognisedontrade-date-thedateonwhichtheGroupcommitstopurchaseorselltheasset.FinancialassetsarederecognisedwhentherightstoreceivecashflowsfromthefinancialassetshaveexpiredorhavebeentransferredandtheGrouphastransferredsubstantiallyallrisksandrewardsofownership.

(c) Initial measurement

Financialassetsareinitiallyrecognisedatfairvalueplustransactioncosts.

(d) Subsequent measurement

Available-for-salefinancialassetsaresubsequentlycarriedatfairvalue.Loansandreceivablesarecarriedatamortisedcostusingtheeffectiveinterestmethod.

Changesinthefairvalueofmonetaryassetsdenominatedinaforeigncurrencyandclassifiedasavailable-for-saleareanalysedintotranslationdifferencesresultingfromchangesinamortisedcostoftheassetandotherchanges.The translationdifferencesare recognised in the incomestatement,andotherchangesare recognised in the fairvaluereservewithinequity.Changesinfairvaluesofothermonetaryandnon-monetaryassetsthatareclassifiedasavailable-for-salearerecognisedinthefairvaluereservewithinequity.

Interestonavailable-for-sale financial assets, calculatedusing theeffective interestmethod, is recognised in theincomestatement.Dividendsonavailable-for-saleequitysecuritiesarerecognised inthe incomestatementwhentheGroup’srighttoreceivepaymentisestablished.Whenfinancialassetsclassifiedasavailable-for-salearesoldorimpaired,theaccumulatedfairvalueadjustmentsrecognisedinthefairvaluereservewithinequityareincludedintheincomestatementas“gainsandlossesfrominvestmentsecurities”.


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2.11Financialassets (continued)

(e) Impairment

TheGroupassessesateachbalancesheetdatewhetherthereisobjectiveevidencethatafinancialassetoragroupoffinancialassetsisimpaired.

(i) Loans and receivables

Anallowanceforimpairmentofloansandreceivables,includingtradeandotherreceivables,isrecognisedwhenthereisobjectiveevidencethattheGroupwillnotbeabletocollectallamountsdueaccordingtotheoriginalterms of the receivables. Significant financial difficulties of the debtor, probability that the debtor will enterbankruptcyorfinancialreorganisation,anddefaultordelinquencyinpaymentsareconsideredindicatorsthatthereceivableisimpaired.Theamountoftheallowanceisthedifferencebetweentheasset’scarryingamountandthepresentvalueofestimatedfuturecashflows,discountedattheoriginaleffectiveinterestrate.Theamountoftheallowanceforimpairmentisrecognisedintheincomestatementwithin“Administrativeexpenses”.

(ii) Available-for-sale financial assets

Inthecaseofanequitysecurityclassifiedasavailable-for-sale,asignificantorprolongeddeclineinthefairvalueofthesecuritybelowitscostisconsideredanindicatorthatthesecurityisimpaired.

Whenthereisobjectiveevidencethatanavailable-for-salefinancialassetisimpaired,thecumulativelossthathasbeenrecogniseddirectlyinthefairvaluereserveisremovedfromthefairvaluereservewithinequityandrecognisedintheincomestatement.Thecumulativelossismeasuredasthedifferencebetweentheacquisitioncost(netofanyprincipalrepaymentsandamortisation)andthecurrentfairvalue,lessanyimpairmentlossonthatfinancialassetpreviouslyrecognisedinincomestatement.

Impairment losses recognised in the incomestatementonequity instrumentsclassifiedasavailable-for-salefinancialassetsarenotreversedthroughtheincomestatement.

2.12Financialguarantees

TheCompanyhasissuedcorporateguaranteestobanksforbankborrowingsofitssubsidiarycompanies.TheseguaranteesarefinancialguaranteecontractsastheyrequiretheCompanytoreimbursethebanksifthesubsidiarycompaniesfailtomakeprincipalorinterestpaymentswhendueinaccordancewiththetermsoftheirborrowings.

Financialguaranteecontractsareinitiallyrecognisedattheirfairvaluesplustransactioncosts.

Financial guarantee contracts are subsequently amortised to the income statement over the period of the subsidiarycompanies’borrowings,unlesstheCompanyhasincurredanobligationtoreimbursethebankforanamounthigherthantheunamortisedamount.Inthiscase,thefinancialguaranteecontractsshallbecarriedattheexpectedamountpayabletothebank.

2.13Inventories

Inventoriesarecarriedatthelowerofcostandnetrealisablevalue.Costisdeterminedusingthefirst-in,first-outmethod.The cost of finished goods and work-in-progress comprises materials, direct labour, other direct costs and relatedproduction overheads (based on normal operating capacity) but exclude borrowing costs. Net realisable value is theestimatedsellingpriceintheordinarycourseofbusiness,lessapplicablevariablesellingexpenses.

Work-in-progressisstatedatcostplusattributableprofits,lessprogresspaymentsreceivedandreceivable.Costincludesmaterials,directlabourandanappropriateproportionofproductionoverheadexpenditure.

Allowance is made where applicable for the total anticipated losses on long-term contracts on hand as soon as thepossibilityoflossisascertained.


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2. significant accounting policies (continued) 2.14Borrowings

Borrowingsarerecognisedinitiallyatfairvalue,netoftransactioncostsincurred.Borrowingsaresubsequentlystatedatamortisedcost.Anydifferencebetweentheproceeds(netoftransactioncosts)andtheredemptionvalueistakentotheincomestatementovertheperiodoftheborrowingsusingtheeffectiveinterestmethod.

Borrowingswhichareduetobesettledwithin12monthsafterthebalancesheetdatearepresentedascurrentborrowingseventhoughtheoriginaltermwasforaperiodlongerthan12monthsandanagreementtorefinance,ortoreschedulepayments,onalong-termbasisiscompletedafterthebalancesheetdateandbeforethefinancialstatementsareauthorisedforissue.Otherborrowingsduetobesettledmorethan12monthsafterthebalancesheetdatearepresentedasnon-currentborrowingsinthebalancesheet.

2.15Derivativefinancialinstrumentsandhedgingactivities

A derivative financial instrument is initially recognised at its fair value on the date the contract is entered into and issubsequentlycarriedatitsfairvalue.Themethodofrecognisingtheresultinggainorlossdependsonwhetherthederivativeisdesignatedasahedginginstrument,andifso,thenatureoftheitembeinghedged.

The Group documents at the inception of the transaction the relationship between hedging instruments and hedgeditems,aswellasitsriskmanagementobjectiveandstrategiesforundertakingvarioushedgetransactions.TheGroupalsodocumentsitsassessment,bothathedgeinceptionandonanongoingbasis,ofwhetherthederivativesdesignatedashedginginstrumentsarehighlyeffectiveinoffsettingchangesincashflowsofthehedgeditems.

Thefullfairvalueofahedgingderivativeispresentedasanon-currentassetorliabilityiftheremaininghedgeitemismorethan12months,andasacurrentassetorliability,iftheremainingmaturityofthehedgeditemislessthan12months.

(a) Cash flow hedge

TheGrouphasenteredintointerestrateswapsthatarecashflowhedgesfortheGroup’sexposuretointerestrateriskonitsborrowings.ThesecontractsentitletheGrouptoreceiveinterestatfloatingratesonnotionalprincipalamountsandobligetheGrouptopayinterestatfixedratesonthesamenotionalprincipalamounts,thusallowingtheGrouptoraisenon-currentborrowingsatfloatingratesandswapthemintofixedratesthatarelowerthanthoseavailableifitborrowedatfixedratesdirectly.

Thechangeinfairvaluesrelatingtotheeffectiveportionoftheinterestrateswapsarerecognisedinthehedgingreservewithinequityandtransferredtotheincomestatementintheperiodswhentheinterestexpenseontheborrowingsarerecognisedintheincomestatement.Thechangesinfairvaluesrelatingtotheineffectiveportionoftheinterestrateswapsarerecognisedimmediatelyintheincomestatementwithin“Othergains-net”.

TheGroupalsoentered into foreigncurrencycontracts tohedgeanticipatedpurchases.Thesecontractsdonotqualify forhedgeaccountingandconsequently, thechanges in fair valuesof thesecontractsare included in theincomestatementintheperioditarises[seeNote2.15(b)].

(b) Derivatives that do not qualify for hedge accounting

Fairvaluechangesforderivative instrumentsthatdonotqualifyforhedgeaccountingare includedinthe incomestatementinthefinancialyearwhenthechangesarise.

2.16Fairvalueestimation

Thecarryingamountsofcurrentfinancialassetsandliabilities,carriedatamortisedcost,areassumedtoapproximatetheirfairvalues.

Thefairvaluesoffinancialinstrumentstradedinactivemarkets(suchasexchange-tradedandover-the-countersecuritiesandderivatives)arebasedonquotedmarketpricesatthebalancesheetdate.ThequotedmarketpricesusedforfinancialassetsheldbytheGrouparethecurrentbidprices;theappropriatequotedmarketpricesforfinancial liabilitiesarethecurrentaskprices.Thefairvaluesofinterestrateswapsarecalculatedasthepresentvalueoftheestimatedfuturecashflows,discountedat activelyquoted interest rates.The fair valuesof forwardcurrencycontractsaredeterminedusingactivelyquotedforwardcurrencyratesatthebalancesheetdate.


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2. significant accounting policies (continued) 2.16Fairvalueestimation (continued)

ThefairvalueoffinancialliabilitiescarriedatamortisedcostareestimatedbydiscountingthefuturecontractualcashflowsatthecurrentmarketinterestratesthatareavailabletotheGroupforsimilarfinancialliabilities.

2.17Operatingleases

(a) When a group company is the lessee:

Leasesofassetsinwhichasignificantportionoftherisksandrewardsofownershipareretainedbythelessorareclassifiedasoperatingleases.Paymentsmadeunderoperatingleases(netofanyincentivesreceivedfromthelessor)aretakentotheincomestatementonastraight-linebasisovertheperiodofthelease.

Contingentrentsarerecognisedasanexpenseintheincomestatementinthefinancialyearinwhichtheyareincurred.

Whenanoperatingleaseisterminatedbeforetheleaseperiodhasexpired,anypaymentrequiredtobemadetothelessorbywayofpenaltyisrecognisedasanexpenseinthefinancialyearinwhichtheterminationtakesplace.

(b) When a group company is the lessor

Assetsleasedoutunderoperatingleasesareincludedininvestmentproperties.

Rentalincomefromoperatingleases(netofanyincentivesgiventolessees)isrecognisedintheincomestatementonastraight-linebasisovertheleaseterm.

InitialdirectcostsincurredbytheGroupinnegotiatingandarranginganoperatingleaseareaddedtothecarryingamountoftheleasedassetandrecognisedasanexpenseintheincomestatementovertheleasetermonthesamebasisastheleaseincome.

Contingentrentsarerecognisedasincomeintheincomestatementinthefinancialyearinwhichtheyareearned.

2.18Incometaxes

Currentincometaxliabilities(andassets)forcurrentandpriorperiodsarerecognisedattheamountsexpectedtobepaidto(orrecoveredfrom)thetaxauthorities,usingthetaxrates(andtaxlaws)thathavebeenenactedorsubstantiallyenactedbythebalancesheetdate.

Deferredincometaxassets/liabilitiesarerecognisedforalldeductibletaxabletemporarydifferencesarisingbetweenthetaxbasesofassetsandliabilitiesandtheircarryingamountsinthefinancialstatementsexceptwhenthedeferredincometaxassets/liabilitiesarisefromtheinitialrecognitionofanassetorliabilityinatransactionthatisnotabusinesscombinationandatthetimeofthetransaction,affectsneitheraccountingnortaxableprofitorloss.

Deferred incometax liability is recognisedon temporarydifferencesarisingon investments insubsidiaries,associatedcompanies and joint venture companies, except where the Group is able to control the timing of the reversal of thetemporarydifferenceanditisprobablethatthetemporarydifferencewillnotreverseintheforeseeablefuture.

Deferredincometaxassetisrecognisedtotheextentthatitisprobablethatfuturetaxableprofitwillbeavailableagainstwhichthetemporarydifferencescanbeutilised.

Deferredincometaxassetsandliabilitiesaremeasuredat:

(a) thetaxratesthatareexpectedtoapplywhentherelateddeferredincometaxassetisrealisedorthedeferredincometaxliabilityissettled,basedontaxrates(andtaxlaws)thathavebeenenactedorsubstantiallyenactedbythebalancesheetdate;and

(b) thetaxconsequencethatwouldfollowfromthemannerinwhichtheGroupexpects,atthebalancesheetdate,torecoverorsettlethecarryingamountsofitsassetsandliabilities.

Currentanddeferredincometaxarerecognisedasincomeorexpensesintheincomestatementfortheperiod,excepttotheextentthatthetaxarisesfromabusinesscombinationoratransactionwhichisrecogniseddirectlyinequity.Deferredincometaxontemporarydifferencesarisingfromtherevaluationgainsandlossesonlandandbuildings,fairvaluegainsandlossesonavailable-for-salefinancialassetsandcashflowhedgesarechargedorcrediteddirectlytoequityinthesameperiodthetemporarydifferencesarise.Deferredincometaxarisingfromabusinesscombinationisadjustedagainstgoodwillonacquisition.


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2.19Provisions

ProvisionsarerecognisedwhentheGrouphasalegalorconstructiveobligationasaresultofpastevents,itismorelikelythannotthatanoutflowofresourceswillberequiredtosettletheobligationandareliableestimateoftheamountcanbemade.

2.20Employeecompensation

(a) Defined contribution plans

Definedcontributionplansarepost-employmentbenefitplansunderwhichtheGrouppaysfixedcontributionsintoseparateentitiessuchastheCentralProvidentFundonamandatory,contractualorvoluntarybasis.TheGrouphasnofurtherpaymentobligationsoncethecontributionshavebeenpaid.TheGroup’scontributionsarerecognisedasemployeecompensationexpensewhentheyaredue.

(b) Share-based compensation

The Group operates an equity-settled, share-based compensation plan. The fair value of the employee servicesreceived in exchange for the grant of the options is recognised as an expense in the income statement with acorrespondingincreaseintheshareoptionreserveoverthevestingperiod.Thetotalamounttoberecognisedoverthevestingperiodisdeterminedbyreferencetothefairvalueoftheoptionsgrantedonthedateofgrant.Non-marketvestingconditionsareincludedintheestimationofthenumberofsharesunderoptionsthatareexpectedtobecomeexercisableonthevestingdate.Ateachbalancesheetdate,theGrouprevisesitsestimatesofthenumberofsharesunderoptionsthatareexpectedtobecomeexercisableonthevestingdateandrecognisestheimpactoftherevisionof theestimates in the incomestatement,withacorrespondingadjustment to theshareoption reserveover theremainingvestingperiod.

Whentheoptionsareexercised,theproceedsreceived(netofanydirectlyattributabletransactioncosts)arecreditedtosharecapitalwhennewordinarysharesareissued.

2.21Currencytranslation

(a) Functional and presentation currency

ItemsincludedinthefinancialstatementsofeachentityintheGrouparemeasuredusingthecurrencyoftheprimaryeconomicenvironmentinwhichtheentityoperates(“functionalcurrency”).ThefinancialstatementsarepresentedinSingaporeDollar,whichistheCompany’sfunctionalcurrency.

(b) Transactions and balances

Transactionsinacurrencyotherthanthefunctionalcurrency(“foreigncurrency”)aretranslatedintothefunctionalcurrencyusingtheexchangeratesprevailingatthedatesofthetransactions.Currencytranslationgainsandlossesresultingfromthesettlementofsuchtransactionsandfromthetranslationofmonetaryassetsandliabilitiesdenominatedinforeigncurrenciesattheclosingratesatthebalancesheetdatearerecognisedintheincomestatement,exceptforcurrencytranslationdifferencesonthenetinvestmentinforeignoperations,borrowingsinforeigncurrenciesandothercurrency instrumentsqualifyingasnet investmenthedges for foreignoperations,whichare included in thecurrencytranslationreservewithinequityintheconsolidatedfinancialstatements[Note2.21(d)].

Non-monetaryitemsthataremeasuredatfairvaluesinforeigncurrenciesaretranslatedusingtheexchangeratesatthedatewhenthefairvaluesaredetermined.Currencytranslationdifferencesonnon-monetaryitemswherebythegainsorlossesarerecogniseddirectlyinequity,suchasequityinvestmentsclassifiedasavailable-for-salefinancialassets, investmentpropertiesandproperty,plantandequipmentare included in the fairvalue reserveandassetrevaluationreserverespectively.

(c) Translation of Group entities’ financial statements

Theresultsandfinancialpositionofallthegroupentitiesthathaveafunctionalcurrencydifferentfromthepresentationcurrencyaretranslatedintothepresentationcurrencyasfollows:

(i) Assetsandliabilitiesaretranslatedattheclosingrateatthedateofthebalancesheet;

(ii) Income and expenses are translated at average exchange rates (unless the average is not a reasonableapproximationofthecumulativeeffectoftheratesprevailingonthetransactiondates,inwhichcaseincomeandexpensesaretranslatedusingtheexchangeratesatthedatesofthetransactions);and

(iii) Allresultingexchangedifferencesaretakentothecurrencytranslationreservewithinequity.


65


2.21Currencytranslation (continued)

(c) Translation of Group entities’ financial statements (continued)

Goodwillandfairvalueadjustmentsonacquisitionofforeignoperationsoccurringonorafter1January2005aretreatedasassetsandliabilitiesoftheforeignoperationsandtranslatedattheclosingratesatthedateofthebalancesheet.Foracquisitionsthatoccurredpriorto1January2005,theexchangeratesatthedatesoftheacquisitionsareused.

(d) Consolidation adjustments

Onconsolidation,currencytranslationdifferencesarisingfromthenetinvestmentinforeignoperations,borrowingsinforeigncurrenciesandothercurrency instrumentsdesignatedashedgesofsuch investments,aretakentothecurrencytranslationreserve.Whenaforeignoperationissold,suchcurrencytranslationdifferencesrecordedinthecurrencytranslationreservearerecognisedintheincomestatementaspartofthegainorlossondisposal.

2.22Segmentreporting

AsegmentisadistinguishablecomponentoftheGroupthatisengagedeitherinprovidingproductsorservices(businesssegment),orinprovidingproductsorserviceswithinaparticulareconomicenvironment(geographicalsegment),whichissubjecttorisksandreturnsthataredifferentfromthoseofothersegments.

Segment information ispresented in respectof theGroup’sbusinessandgeographicalsegment.Theprimary format,businesssegments,isbasedonboththeGroup’sprincipalactivitiesanditsmanagementandinternalreportingstructure.Inpresentinginformationonthebasisofgeographicalsegments,segmentrevenueisbasedonthegeographicallocationofcustomers.Segmentassetsarebasedonthegeographicallocationoftheassets.

Inter-segmentpricingisdeterminedonanarm’slengthbasis.

Segmentresults,assetsandliabilitiesincludeitemsdirectlyattributabletoasegmentaswellasthosethatcanbeallocatedonareasonablebasis.Unallocateditemscomprisemainlycurrentanddeferredincometaxassetsandliabilities.Segmentcapitalexpenditureisthetotalcostincurredduringthefinancialyeartoacquireproperty,plantandequipment.

2.23Cashandcashequivalents

Cashandcashequivalentsincludeinterest-bearingbankaccounts,fixeddepositswithfinancialinstitutionsandcashandbankbalances.

2.24Sharecapital

Ordinarysharesareclassifiedasequity.

Incrementalcostsdirectlyattributabletotheissuanceofnewordinarysharesaredeductedagainstthesharecapitalaccount.

2.25Dividend

Interimdividendsarerecordedinthefinancialyearinwhichtheyaredeclaredpayable.Finaldividendsarerecordedinthefinancialyearinwhichthedividendsareapprovedbytheshareholders.

2.26Tradeandotherpayables

Trade and other payables are initially recognised at fair value, and subsequently carried at amortised cost, using theeffectiveinterestmethod.


66

3. effects on financial statements on aDoption of neW frs

FRS40Investment Property

PriortotheadoptionofFRS40,investmentpropertiesarestatedatfairvaluebasedontheiropenmarketvalues.Increasesincarryingamountarisingfromtherevaluationofeachclassofinvestmentpropertiesaretakentoanassetrevaluationreserveinshareholders’equity,unlesstheyaredirectlyrelatedtopreviousdecreasesincarryingamountthatweretakentotheincomestatement.Suchincreasesaretakentoincomestatementtotheextentthattheyoffsetpreviouslyrecordeddecreases.Decreasesinthecarryingamountthatoffsetpreviousincreasesofthesameclassofassetaretakentoassetrevaluationreserve;allotherdecreasesaretakentotheincomestatement.

WiththeadoptionofFRS40,changesinfairvaluesofinvestmentpropertiesareincludedintheincomestatement.InvestmentpropertieswhichdonotmeettherecognitioncriteriaunderFRS40arereclassifiedasproperty,plantandequipmentunderFRS16Property, Plant and Equipment. Property,plantandequipmentwhichmeettherecognitioncriteriaunderFRS40arereclassifiedasinvestmentproperties.Inaddition,inaccordancewithFRS12 Income Taxes,theGrouphasalsoprovidedfordeferredincometaxontherevaluationsurplus.

ThischangeinaccountingpolicyhasbeenaccountedforprospectivelyinaccordancewiththetransitionalprovisionsofFRS40andtheeffectsofthechangeonthebalancesheetsasat30June2007and1July2006andtheconsolidatedincomestatementandearningspershareforthefinancialyearareasfollows:

Group Company Increase/(Decrease) Increase/(Decrease) as at Asat as at Asat 30 June 2007 1July2006 30 June 2007 1July2006 $’000 $’000 $’000 $’000

balance sheetsInvestmentsinassociatedcompanies (19,865) (8,782) – –Investmentproperties (35,826) (35,826) 82,000 82,000Property,plantandequipment 35,826 35,826 (82,000) (82,000)Deferredincometaxliabilities 41,075 10,523 – –Assetrevaluationandotherreserves (127,491) (127,491) (76,018) (76,018)Retainedearnings 308,413 108,399 76,018 76,018Minorityinterests 7,917 (213) – –

Group Increase 2007 $’000

consolidated income statementFairvaluegainsoninvestmentproperties 189,033Shareofprofitofassociatedandjointventurecompanies 49,663Less: Deferredincometaxexpense 30,552 Minorityinterests 8,130

200,014

earnings per share (cents)Basic 27.82

Diluted 27.79


67

4. revenue Group 2007 2006 $’000 $’000

Revenuefromsaleof:–developmentproperties 752,936 727,865–goodsandservices 184,421 121,588Rentalincome 36,296 33,346Managementfees 7,981 4,849Dividendincome – 1,610

981,634 889,258

5. other gains – net Group 2007 2006 $’000 $’000

Leasingincome 1,644 1,517Interestincomefrom:–associatedcompanies 54 ––jointventurecompanies 1,884 700–banks 10,280 7,340Negativegoodwillarisingfromadditionalsharesinsubsidiarycompany 7,695 1,636Gainondisposalofplant,propertyandequipment 713 491Gainondisposalofsubsidiarycompany 742 –Gainondisposalofassociatedcompany 4,024 –Fairvaluegainsoninvestmentproperties 189,033 –Fairvaluegainsonderivativefinancialinstruments 1,046 –Othermiscellaneousgains 2,247 3,756

219,362 15,440

6. expenses bY nature Group 2007 2006 $’000 $’000

Depreciationofproperty,plantandequipment(Note23) 8,331 5,069Employeecompensation(Note7) 81,042 44,611Allowancefor/(write–backof)impairmentoftradereceivables 137 (411)Write–downofinventory 2,064 1,759Reversalofinventorywrite–downmadeinprecedingfinancialyears(Note14) (1,326) (773)Rentalonoperatingleases 44,773 35,337Foreignexchange(gain)/loss (162) 578Allowanceforforeseeablelossesondevelopmentproperties – 31,211Developmentcostincludedincostofsales 518,642 579,251Rawmaterialsandfinishedgoods 75,170 71,747Impairmentofproperty,plantandequipment(Note23) – 3,170


68

7. emploYee compensation Group 2007 2006 $’000 $’000

Wagesandsalaries(includingdirectors’remuneration) 73,438 40,359Employer’scontributiontodefinedcontributionplansincludingCentralProvidentFund 6,223 3,296Shareoptionsexpense 1,381 956

81,042 44,611

PleaserefertoNote35(b)fordirectors’remuneration.

8. finance costs Group 2007 2006 $’000 $’000

Interestexpense–jointventurecompanies 1,586 829–termloans 30,471 39,086–otherloans – 382

32,057 40,297

9. income taxes (a) Income tax expense

Group 2007 2006 $’000 $’000

Taxexpenseattributabletoprofitismadeupof:

Currentincometax–Singapore 24,488 5,173–Foreign 12 2,303

24,500 7,476Deferredincometax[Note9(b)] 34,639 5,845 59,139 13,321

(Over)/underprovisioninprecedingfinancialyears–Currentincometax (984) 175–Deferredincometax[Note9(b)] – 7,667

58,155 21,163

TheGroupissubjecttoincometaxesinnumerousjurisdictions.Significantjudgementisrequiredindeterminingthecapitalallowancesanddeductibilityofcertainexpensesduringtheestimationoftheprovisionforincometaxes.Therearemanytransactionsandcalculationsforwhichtheultimatetaxdeterminationisuncertainduringtheordinarycourseofbusiness.TheGrouprecognisesliabilitiesforanticipatedtaxauditissuesbasedonestimatesofwhetheradditionaltaxeswillbedue.Wherethefinaltaxoutcomeofthesemattersisdifferentfromtheamountsthatwereinitiallyrecorded,suchdifferenceswillimpacttheincometaxanddeferredincometaxprovisionsintheperiodinwhichsuchdeterminationismade.


69

9. income taxes (continued)

(a) Income tax expense (continued)

TheincometaxexpenseonprofitdiffersfromtheamountthatwouldariseusingtheSingaporestandardrateofincometaxasexplainedbelow:

Group 2007 2006 % %

Singaporestandardrateofincometax 18.0 20.0Differenttaxratesinothercountries 0.8 0.5Expensesnotdeductiblefortaxpurposes 0.6 12.0Incomenotsubjectedtotax (3.5) (10.0)Utilisationofpreviouslyunrecognisedtemporarydifferences (4.1) (14.0)(Over)/underprovisioninprecedingfinancialyears (0.2) 5.0

11.6 13.5

On15February2007,theSingaporeSecondMinisterforFinanceannouncedareductioninthecorporatetaxratefrom20%to18%andvarioustaxincentivesfortheyearofassessment2008andonwards.

(b) Deferred income taxes

Deferredincometaxassetsandliabilitiesareoffsetwhenthereisalegallyenforceablerighttosetoffcurrentincometaxassetsagainstcurrentincometaxliabilitiesandwhenthedeferredincometaxesrelatetothesamefiscalauthority.Theamounts,determinedafterappropriateoffsetting,areshownonthebalancesheetasfollows:

Group Company 2007 2006 2007 2006 $’000 $’000 $’000 $’000

Deferredincometaxliabilitiestobesettledafteroneyear 52,425 8,769 158 158Deferredincometaxassetstoberecoveredafteroneyear – (1,325) – –

52,425 7,444 158 158

Deferredincometaxassetsarerecognisedfortaxlossescarriedforwardtotheextentthatrealisationoftherelatedtaxbenefitsthroughfuturetaxableprofitsisprobable.TheGrouphadunutilisedtaxlossesof$153.8million(2006:$111.0million) available for setoff against future taxable income subject to meeting certain statutory requirements by thosecompanieswithunutilisedtaxlossesintheirrespectivecountriesofincorporation.Thesetaxlosseshavenoexpirydate.TheCompany’sdeferredincometaxliabilitiesof$0.2million(2006:$0.2million)relatestotheacceleratedtaxdepreciationonitsproperty,plantandequipment.


70

9. income taxes (continued)

(b) Deferred income taxes (continued)

Themovementinthedeferredincometaxassetsandliabilities(priortooffsettingofbalanceswithinthesametaxjurisdiction)duringthefinancialyearwasasfollows:

Deferred income tax liabilities - Group Recognition ofprofitson Acceleratedtax Revaluation percentage- depreciation gains of-completion Others Total $’000 $’000 $’000 $’000 $’000

2007Beginningoffinancialyear,aspreviouslyreported 1,013 2,384 5,272 100 8,769EffectofadoptionofFRS40(Note3) – 10,523 – – 10,523

Asrestated 1,013 12,907 5,272 100 19,292Currencytranslationdifferences – 22 – – 22Creditedtoequity[Note29(c)] – (203) – – (203)Chargedtoincomestatement[Note9(a)] 56 28,223 4,734 301 33,314

Endoffinancialyear 1,069 40,949 10,006 401 52,425

2006Beginningoffinancialyear 329 – 2,157 100 2,586Currencytranslationdifferences 1 (15) – – (14)Acquisitionofsubsidiarycompany 3,705 3,487 – – 7,192Chargedtoequity[Note29(c)] – 82 – – 82Charged/(credited)toincomestatement[Note9(a)] (3,022) (1,170) 3,115 – (1,077)

Endoffinancialyear 1,013 2,384 5,272 100 8,769

Deferred income tax assets - Group

Unutilised Provisions Taxlosses taxcredit Others Total $’000 $’000 $’000 $’000 $’000

2007Beginningoffinancialyear 142 383 225 575 1,325Chargedtoincomestatement[Note9(a)] (142) (383) (225) (575) (1,325)

Endoffinancialyear – – – – –

2006Beginningoffinancialyear – – – 809 809Currencytranslationdifferences (1) 8 14 – 21Acquisitionofsubsidiarycompany 877 6,404 7,803 – 15,084Chargedtoincomestatement[Note9(a)] (734) (6,029) (7,592) (234) (14,589)

Endoffinancialyear 142 383 225 575 1,325


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10. earnings per share(a) Basic earnings per share

Basicearningspershare iscalculatedbydividing thenetprofitattributable toequityholdersof theCompanyby theweightedaveragenumberofordinarysharesinissueduringthefinancialyear.

Group 2007 2006 $’000 $’000

NetprofitattributabletoequityholdersoftheCompany 381,835 128,028

‘000 ‘000

Weightedaveragenumberofordinarysharesinissueforbasicearningspershare 718,874 717,445

Basicearningspershare(cents) 53.12 17.84

(b) Diluted earnings per share

Thedilutedearningspershareiscalculatedbyadjustingtheweightedaveragenumberofordinarysharesinissuetoassumeconversionofalldilutivepotentialordinarysharesfromshareoptions.Acalculationisdonetodeterminethenumberofsharesthatcouldhavebeenacquiredatfairvalue(determinedastheaverageannualmarketsharepriceoftheCompany’sshares)basedonthemonetaryvalueof thesubscriptionrightsattachedtooutstandingshareoptions.Thenumberofsharescalculatedasaboveiscomparedwiththenumberofsharesthatwouldhavebeenissuedassumingtheexerciseoftheshareoptions.Thedifferenceisaddedtothedenominatorasanissueofordinarysharesfornoconsideration.

Group 2007 2006 $’000 $’000

NetprofitattributabletoequityholdersoftheCompanyforbasicearningspershare 381,835 128,028

Adjustmentsforshareoptionsof:–subsidiarycompany (108) ––associatedcompany (57) (36)

Netprofitusedtodeterminedilutedearningspershare 381,670 127,992

’000 ’000

Weightedaveragenumberofordinarysharesinissueforbasicearningspershare 718,874 717,445Adjustmentsforassumedconversionofshareoptions 901 1,214

Numberofordinarysharesusedtodeterminedilutedearningspershare 719,775 718,659

Dilutedearningspershare(cents) 53.03 17.81


72

11. cash anD cash equivalents Group Company 2007 2006 2007 2006 $’000 $’000 $’000 $’000

Fixeddepositswithfinancialinstitutions 293,729 276,362 126,500 167,133Cashandbankbalances 117,061 32,176 2,638 1,292

410,790 308,538 129,138 168,425

Included in cash and cash equivalents of the Group are amounts held under Housing Developers (Project Account)(Amendment)Rules1997,totalling$101.6million(2006:$10.2million),theuseofwhichissubjecttorestrictionsimposedbytheaforementionedrules.

Atthebalancesheetdate,thecarryingamountsofcashandcashequivalentsapproximatedtheirfairvalues.

Cashandcashequivalentsweredenominatedinthefollowingcurrencies:

Group Company 2007 2006 2007 2006 $’000 $’000 $’000 $’000

SingaporeDollar 354,637 283,106 128,969 168,061MalaysianRinggit 18,206 21,038 5 5UnitedStatesDollar 2,012 3,947 41 209ChineseRenminbi 35,566 – – –Others 369 447 123 150

410,790 308,538 129,138 168,425

Thefixeddepositswithfinancialinstitutionsmatureonvaryingdateswithin4months(2006:4months)fromthefinancialyear-endwiththefollowingweightedaverageeffectiveinterestrates:

Group Company 2007 2006 2007 2006 % % % %

SingaporeDollar 2.1 3.3 2.1 3.3MalaysianRinggit 2.9 3.0 – –Others – 3.7 – –


73

11. cash anD cash equivalents (continued)

(a) Acquisition of subsidiary companies

(i) On10October2006,WingTaiLandPte.Ltd.,awholly-ownedsubsidiaryoftheCompany,acquiredanadditional20%oftheissuedsharecapitalofSuzhouPropertyDevelopmentPteLtd(“SPD”)foracashconsiderationof$3.7millionandalsoincludesthepaymentofshareholder’sloanamountingto$7.4million.TheacquisitionhasincreasedtheGroup’sshareholdinginSPDfrom35%to55%resultinginSPDbecomingasubsidiarycompanyoftheGroup.

Theaboveacquisitioncontributedarevenueof$19.2millionandanoperatingprofitof$2.5milliontotheGroupfortheperiodfrom10October2006to30June2007.

Iftheaboveacquisitionhadoccurredon1July2006,theGroup’srevenueandprofitaftertaxandminorityinterestswouldhaveincreasedby$30.6millionand$2.6millionrespectively.

(ii)TheeffectsofacquisitionofsubsidiarycompaniesonthecashflowsoftheGroupwereasfollows: Group 2007 2006 $’000 $’000

Identifiableassetsandliabilities:Developmentproperties 21,380 150,033Investmentproperties – 120,694Property,plantandequipment 16,779 23,958Deferredincometaxassets – 15,084Othercurrentassets 4,837 63,616Cashandcashequivalents 34,862 5,214

Totalassets 77,858 378,599

Borrowings – (40,907)Tradeandotherpayables (23,455) (19,708)Currentincometaxliabilities (41) (745)Deferredincometaxliabilities - (7,192)Othernon-currentliabilities (36,830) (20,760)

Totalliabilities (60,326) (89,312)

Netidentifiableassets 17,532 289,287Minorityinterests (8,391) (142,580)Investmentheldpriortoacquisition (5,413) (144,200)

Netidentifiableassetsacquired 3,728 2,507Negativegoodwillarisingfromacquisition – (1,636)

Totalcashconsiderationpaid 3,728 871

Totalcashconsiderationpaid (3,728) (871)Paymentofshareholders’loan (7,372) –Cashandcashequivalentsinsubsidiarycompanyacquired 34,862 5,214

Netcashinflowonacquisition 23,762 4,343


74

11. cash anD cash equivalents (continued)

(b) Disposal of subsidiary company

On30April2007,DNPHoldingsBerhad,asubsidiaryoftheCompany,disposedofits100%interestinDragon&PhoenixDevelopmentSdnBhdforacashconsiderationof$2.9million.

TheeffectsofdisposalofsubsidiarycompanyonthecashflowsoftheGroupwereasfollows: Group 2007 2006 $’000 $’000

Identifiableassetsandliabilities:Developmentproperties 2,194 –Tradeandotherpayables (1) –

Netidentifiableassetsdisposed 2,193 –Gainondisposalofsubsidiarycompany 742 –

Netcashinflowondisposal 2,935 –

(c) Acquisition of minority interests

On12April2007,WingTaiLandPte.Ltd.,awhollyownedsubsidiaryoftheCompany,acquiredanadditional20%ofthe issuedsharecapitalofSuzhouPropertyDevelopmentPteLtd(“SPD”)foracashconsiderationof$3.9millionandalso includes thepaymentofshareholder’s loanamounting to$7.2million.Theacquisitionhas increasedtheGroup’sshareholdinginSPDfrom55%to75%.TheGrouprecognisedadecreaseinminorityinterestof$3.9million.

Duringthefinancialyearended30June2007,WingTaiInvestment&DevelopmentPteLtd,awhollyownedsubsidiaryof theCompany,acquiredanadditional3.9%of the issuedsharecapitalofDNPHoldingsBerhad (“DNP”) foracashconsiderationof$5.2million.TheacquisitionhasincreasedtheGroup’sshareholdinginDNPfrom50.2%to54.1%.TheGrouprecognisedadecreaseinminorityinterestof$12.9million.Theacquisitionresultedinanegativegoodwillof$7.7million(Note5).

Theadditionalacquisitionof3.9%ofDNPhasresultedinanincreaseintheGroup’seffectiveequityinterestinPTWindasfrom57.6%to58.5%.


75

12. Derivative financial instruments Group Company 2007 2006 2007 2006 $’000 $’000 $’000 $’000

Beginningoffinancialyear 1,851 (5,922) 1,874 (3,485)Fairvaluegains/(losses)–Includedinincomestatement 1,046 (311) – ––Includedinhedgingreserve (12,225) 8,084 (11,893) 5,359

Endoffinancialyear (9,328) 1,851 (10,019) 1,874

Analysedas: Group Company Contract/ Fairvalue Contract/ Fairvalue Notional Assets/ Notional Assets/ Amount (Liabilities) Amount (Liabilities) $’000 $’000 $’000 $’000

2007Cash flow hedges–Interestrateswaps 424,760 (10,063) 324,760 (10,019)

Non-hedging instruments–Currencyforwards 28,296 735 – –

total (9,328) (10,019)

2006Cash flow hedges–Interestrateswaps 474,760 2,208 374,760 1,874

Non-hedging instruments–Currencyforwards 30,101 (67) – ––Interestrateswaps 13,129 (290) – –

total 1,851 1,874

At30June2007,thefixedinterestratesoninterestrateswapsvaryfrom2.1%to3.3%(2006:2.1%to3.3%)perannumandthemainfloatingrateisSingaporeSwapOfferRate.

PleaserefertoNote34fordetailsofthefinancialinstrumentandhedgingpolicies.


76

13. traDe anD other receivables – current Group Company 2007 2006 2007 2006 $’000 $’000 $’000 $’000

Tradereceivables 100,940 73,349 8 36Allowanceforimpairmentofreceivables (1,559) (1,391) – –

99,381 71,958 8 36

Duefromsubsidiarycompanies–non-trade[Note13(i)] – – 493,110 509,958Allowanceforimpairmentofreceivables – – (110,381) (128,260)

– – 382,729 381,698

Duefromassociatedcompanies–trade – 374 – ––non-trade[Note13(ii)] 800 1,298 581 556

800 1,672 581 556

Duefromjointventurecompanies–trade – 2 – ––non-trade[Note13(ii)] 492 2,117 6 6

492 2,119 6 6

Dividendsreceivable(quoted) – 937 – 930

total current receivables 100,673 76,686 383,324 383,226

(i) Amountsduefromsubsidiarycompaniesareunsecuredandarerepayableondemand.Includedintheamountsduefromsubsidiarycompaniesarefixedinterestratereceivablesof$234.1million(2006:$220.0million).TheweightedaverageeffectiveinterestrateatbalancesheetdateisdisclosedinNote18tothefinancialstatements.

(ii) Amountsduefromassociatedandjointventurecompaniesareunsecured,interest-freeandarerepayableondemand.

ConcentrationsofcreditriskwithrespecttotradereceivablesarelimitedduetotheGroup’slargenumberofcustomers.Duetothesefactors,managementbelievesthatthereisnoanticipatedadditionalcreditriskbeyondtheamountofallowanceforimpairmentmadeisinherentintheGroup’sandCompany’stradereceivables.

Thecarryingamountsofcurrenttradeandotherreceivablesapproximatedtheirfairvalues.ThecurrencydenominationandexposuretointerestraterisksofcurrenttradeandotherreceivablesaredisclosedinNote18,togetherwithnon-currenttradeandotherreceivables.


77

14. inventories Group 2007 2006 $’000 $’000

Rawmaterials 4,506 7,993Work-in-progress 4,124 3,386Finishedgoods 16,355 12,338

24,985 23,717

Thecostofinventoriesrecognisedasexpenseandincludedin“costofsales”amountedto$75.2million(2006:$71.7million).

Duringthefinancialyear,theGroupreversed$1.3million(2006:$0.8million),beingpartofaninventorywrite-downmadeintheprecedingfinancialyear,astheinventoriesweresoldabovetheircarryingamounts.Thereversalwasincludedin“costofsales”intheincomestatement.

15. Development properties Group 2007 2006 $’000 $’000

Propertiesunderdevelopment 970,837 756,210Propertiesheldforsale 16,522 292,066

987,359 1,048,276

(a) Propertiesunderdevelopment

Landatcost 1,110,856 739,221 Developmentcosts 279,449 162,907 Overheadexpenditurecapitalised 86,652 48,923

1,476,957 951,051 Attributableprofits 91,397 38,155 Allowanceforforeseeablelosses (50,844) (58,638)

1,517,510 930,568

Progresspaymentsreceivedandreceivable (546,673) (174,358)

970,837 756,210

(b) Propertiesheldforsale

Beginningoffinancialyear 292,066 300,917Currencytranslationdifferences 312 –Acquisitionofsubsidiarycompany 14,581 12,809Transferfrompropertiesunderdevelopment – 166,091Transferfromproperty,plantandequipment 2,555 –Adjustmentfordevelopmentcost (4,445) (2,705)Saleofpropertiesduringthefinancialyear (288,070) (185,046)Allowanceforforeseeablelosses (477) –

Endoffinancialyear 16,522 292,066

Valueofpropertiesunderdevelopmentmortgagedtosecurelongtermbankingfacilitiesgranted 602,269 719,268

Valueofpropertiesheldforsalemortgagedtosecurelongtermbankingfacilitiesgranted – 54,541

Totalinterestcapitalisedduringthefinancialyear 16,065 11,895


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15. Development properties (continued)

(c) RAP11Pre-CompletionContractsfortheSaleofDevelopmentProperty

TheGroupusesthepercentageofcompletionmethodforrecognisingrevenuefrompartlycompletedresidentialprojects.Hadthecompletedcontractmethodbeenadopted,theimpactonthefinancialstatementsoftheGroupwillbeasfollows:

Group Decrease 2007 2006 $’000 $’000

Openingretainedearnings (14,583) (5,778)Revenuerecognisedforthefinancialyear (275,442) (198,965)Developmentcostsrecognisedforthefinancialyear (222,200) (175,488)Profitforthefinancialyear (59,848) (22,426)Carryingvalueofdevelopmentproperties Beginningoffinancialyear (38,155) (12,691) Endoffinancialyear (91,397) (38,155)Deferredincometaxliabilities (10,006) (5,272)Investmentsinjointventurecompanies (13,404) (2,064)Minorityinterests Beginningoffinancialyear (20,363) (6,742) Shareofprofitforthefinancialyear (28,567) (13,621)

(d) Thedevelopmentpropertiesareasfollows:

%of Gross Group’s completion Expected Land floor interestin Typeof at completion area area property

Location development Tenure 30.06.2007 date (Sqm) (Sqm) (%)

singapore

Lot8988K 778unitsof 99-yearlease 98 2007 24,272 88,454 60Mukim22, condominium from2004FlowerRoad/ housingKovanRoad (KovanMelody)

Lots2144N 96unitsof Freehold 6 2009 3,282 11,486 100&2446KTS17at condominium398KallangRoad housing(TheRiverinebythePark)

Lots212CPT, 140unitsof Freehold – 2010 7,399 20,717 100440W,441V, condominium696P,1151A housingPT99643V,99644P,99649X,99650Kand99651NTS27atCairnhillCircle(HeliosResidences)

Lots373C,395T Condominium Freehold – 2010 23,004 32,205 60and643V housingTS20atOxleyWalk(BelleVueResidences)


79


(d) Thedevelopmentpropertiesareasfollows:(continued)



singapore (continued)

Lot726NTS28at Condominium Freehold – 2010 3,984 11,156 100NewtonRoad housing(L’VIV)

Lot715N Condominium Freehold – 2011 5,624 15,746 100TS25at1A, housingArdmorePark

malaysia

Lots197and198, 110unitsof Freehold 58 2007 2,713 23,831 54.1Section43,Town condominiumofKualaLumpur, housing(TheMeritz)

Lots96,149and Mixed Freehold Phase1 63 2008 504,683 120,421 54.1452-454Mukim development Phase2 – 2010ofUluKlang, comprising Phase3 – –Gombak,Selangor 566unitsof (SeringUkay) terraceand semi-detached housesand bungalows

Lots4024,4196, 20unitsof Freehold 44 2008 7,323 4,123 54.14241,6618-6628, semi-detached6630-6632, housesand6635and6636 bungalowsMukim13,DaerahSeberangPeraiTengah,Penang(TamanBukitMinyakIndah)

Lots11971-11988 291unitsof Freehold Phase3 85 2007 51,751 42,331 54.1and11991-12030 terraceand Phase4 – 2010Mukim14,various semi-detached Phase5 – 2010lotsin16836-16895, housesand Phase6 33 200817029-17310, bungalows 18484-18485and20070-20097Mukim15,DaerahSeberangPeraiTengah,Penang(TamanSeriImpian)


80





malaysia (continued)

Variouslotsin 22unitsof Freehold 87 2008 3,724 2,498 54.119705-19727 semi-detachedMukim15, housesandDaerahSeberang bungalowsPeraiTengah,Penang(GemsGardens)

Lot1315,Section57, Condominium Freehold – – 9,764 n/a 54.1TownofKualaLumpur housing

Lots1812-1815 487unitsof Freehold BlockA – – 22,662 n/a 54.1Mukim6,13600 flats BlockB 12 –ProvinceWellesley BlockC 38 2009Central,Penang

PT484,492 15unitsof Freehold – 2009 21,964 33,982 54.1532-573and shophouses/2647,3001,3035, vacantland3665Mukim6,13600ProvinceWellesleyCentral,Penang

Variouslotsin Mixed Freehold/ – 2012 226,993 n/a 54.1266-279and development 999-year1195-1517, comprising leasePt1084, 550unitsof expiringLots130and terraceand 28761515Mukim14, semi-detachedDaerahSeberang housesandPeraiTengah, shopsPenang

14-A,JalanDato Apartments Freehold – 2012 4,715 59,075 54.1AbdullahTahir,80300JohorBahru,Johor

Lots1130,1133, Vacantland Freehold – – 384,273 n/a 54.11166,1167,1187,1188and1255Mukim15,DaerahSeberangPeraiTengah,Penang


81





malaysia (continued)

Lot1254 Vacantland Freehold – – 24,306 n/a 54.1Mukim15,DaerahSeberangPeraiTengah,Penang

Lots1379,1380 Vacantland Freehold – – 107,362 n/a 54.1and1742Mukim15,DaerahSeberangPeraiTengah,Penang

Lot1464 Vacantland Freehold – – 18,666 n/a 54.1Mukim13,TempatRelau,DaerahTimurLaut,Penang

Lots7891-7937 Mixed Freehold – – 8,392 n/a 54.1Mukim13, developmentSeberangPerai comprisingSelatan, terraceandPenang semi-detached housesand bungalows

the people’s republic of china

No.63,Xinggang Apartments 70-year Phase1 100 Completed 81,351 41,337 75Street,Suzhou lease Phase2 – 2009IndustrialPark from2000(TheLakeview)

No.1,Xingzhou Mixed 70-year – – 40,000 n/a 75Street,Suzhou development leaseIndustrialPark comprising from2000(TheLakeside) townhouses, bungalows andapartments

indonesia

JalanH.R. Vacantland 30-yearlease – – 16,080 n/a 58.5RasunaSaid, from1996,withSouthJakarta optiontoextend thelease

n/a:notapplicable


82

16. other current assets

Group Company 2007 2006 2007 2006 $’000 $’000 $’000 $’000

Interestreceivables 30 260 – –Deposits 20,214 5,970 21 14Prepayments 2,913 10,507 405 434Taxrecoverable 7,534 17,234 6,177 9,514Others 6,165 8,818 805 830

36,856 42,789 7,408 10,792

Thecarryingamountsofothercurrentassetsapproximatedtheirfairvalues.ThecurrencydenominationofothercurrentassetsaredisclosedinNote18,togetherwithtradeandotherreceivables.

17. available-for-sale financial assets

Group Company 2007 2006 2007 2006 $’000 $’000 $’000 $’000

Beginningoffinancialyear 7,774 3,853 3,793 3,793Additions 2,340 3,980 – –Disposals – (56) – –Fairvaluegainsrecognisedinequity 23,019 – – –Currencytranslationdifferences 50 (3) – –

Endoffinancialyear 33,183 7,774 3,793 3,793

Atthebalancesheetdate,available-for-salefinancialassetsincludethefollowing:

Group Company 2007 2006 2007 2006 $’000 $’000 $’000 $’000

Unquotedequityshares–Singapore 7,774 7,774 3,793 3,793–HongKongSAR 25,409 – – –

33,183 7,774 3,793 3,793


83

18. traDe anD other receivables – non-current

Group Company 2007 2006 2007 2006 $’000 $’000 $’000 $’000

Loanstosubsidiarycompanies[Note18(i)]–interest-bearing – – 150,039 109,595–interest-free – – 446,174 555,324

– – 596,213 664,919

Allowanceforimpairmentofreceivables – – (9,646) (4,626)

– – 586,567 660,293

Loanstoassociatedcompanies[Note18(ii)]

–interest-bearing 4,395 4,286 – ––interest-free 1,130 905 – –

5,525 5,191 – –

Allowanceforimpairmentofreceivables (494) (525) – –

5,031 4,666 – –

Loanstojointventurecompanies[Note18(iii)]–interest-bearing 49,779 72,710 – ––interest-free 165,864 145,107 – –

215,643 217,817 – –

Allowanceforimpairmentofreceivables (10,558) (25,483) – –

205,085 192,334 – –

Loanstoinvesteecompanies[Note18(iv)] 19,669 19,357 – –Loanstominorityshareholders[Note18(v)] 18,743 22,344 – –

38,412 41,701 – –

total non-current receivables 248,528 238,701 586,567 660,293

(i) Loanstosubsidiarycompaniesareunsecured,repayableondemand,butarenotrepayablewithin12monthsfromthebalancesheetdate.Includedintheloanstosubsidiarycompaniesarefixedinterestrateloansof$129.7million(2006:$90.2million)andfloatinginterestrateloansof$20.3million(2006:$19.4million).Theweightedaverageeffectiveinterestrateoftheloanstosubsidiarycompaniesatthebalancesheetdateareasdisclosedinthisnote.

(ii) Loans to associated companies are unsecured, repayable on demand, but are not repayable within 12 months fromthebalancesheetdate.Includedintheloanstoassociatedcompaniesarefixedinterestbearingamountswhichbearaweightedaverageeffectiveinterestrateatbalancesheetdateasdisclosedbelow.

(iii) Includedintheloanstojointventurecompaniesareamountsof$87.7million(2006:$87.7million)whicharesubordinatedtobankingfacilitiesof$140.1million(2006:$233.1million)grantedbybankstothesaidjointventurecompanies.

Thefloatinginterestrateloanstojointventurecompaniesbearaweightedaverageeffectiveinterestrateatbalancesheetdateasdisclosedbelow.

(iv) Loanstoinvesteecompaniesareunsecured,interestfreeandrepayableondemand.Theamountsarenotexpectedtoberepaidwithin12monthsfromthebalancesheetdate.

(v) Loansbycertainsubsidiarycompaniestominorityshareholdersaremadeproportionatetotheshareholders’equitystakeinthesubsidiarycompaniesonaparipassubasiswithno interestcharge.The loansareunsecuredand interest-free,repayableondemand,butarenotexpectedtoberepayablewithinthenext12months.


84

18. traDe anD other receivables – non-current (continued)

Thecarryingamountsofnon-currenttradeandotherreceivablesapproximatedtheirfairvalues.

Tradeandotherreceivables[current(Note13)andnon-current]andothercurrentassets(Note16)weredenominatedinthefollowingcurrencies:

Group Company 2007 2006 2007 2006 $’000 $’000 $’000 $’000

SingaporeDollar 214,111 284,265 878,148 980,274MalaysianRinggit 17,085 12,351 – –UnitedStatesDollar 74,552 3,458 40,251 12,387HongKongDollar 79,455 57,291 58,900 61,650Others 854 811 – –

386,057 358,176 977,299 1,054,311

Theweightedaverageeffectiveinterestratesatthebalancesheetdatewereasfollows:

Group

2007 2006 sgD usD SGD USD % % % %

Non-currentinterest-bearingloansto:–associatedcompanies[Note18(ii)] 2.5 – 5.0 ––jointventurecompanies[Note18(iii)] 4.2 – 4.2 –

Company

2007 2006 sgD usD SGD USD % % % %

Currentinterest-bearingamountsduefromsubsidiarycompanies[Note13(i)] 2.9 – 2.8 –

Non-currentinterest-bearingloanstosubsidiarycompanies[Note18(i)] 3.9 7.4 3.8 6.0


85

19. investments in associateD companies Group 2007 2006 $’000 $’000

Beginningoffinancialyear,aspreviouslyreported 371,749 455,971EffectofadoptingFRS40 (8,782) –

Asrestated 362,967 455,971Shareofassociatedcompanies’capitalreserves 19,782 15,858Shareofassociatedcompanies’netprofits 68,202 60,954Dividendsreceived (10,675) (6,735)Associatedcompaniesofasubsidiarycompanyacquired – 1,963Acquisitionofadditionalsharesinassociatedcompanies 295,124 –Disposalofassociatedcompany (291,451) –Reclassifiedtosubsidiarycompanyduetoacquisitionofcontrollinginterest – (136,138)Currencytranslationdifferences (16,609) (20,616)Others 4,246 492


Thesummarisedfinancialinformationofassociatedcompaniesisasfollows: Group 2007 2006 $’000 $’000

Assets 1,098,344 2,247,252Liabilities (444,460) (783,099)Revenue 425,102 876,110Netprofit 268,459 263,066

Shareofassociatedcompanies’contingentliabilitiesincurredjointlywithotherinvestors 114 6,606

Carryingamountofquotedequityshares 410,829 356,821

Marketvalueofquotedequityshares 351,028 237,514

On29June2007,USIHoldingsLimited(“USI”)acquiredtheGroup’s27.7%interest inWinsorPropertiesHoldingsLimited(“Winsor”)fornewsharesissuedbyUSI.Asaresult,WinsorceasedtobeanassociatedcompanyoftheGroupandbecameasubsidiaryofUSI.Asatthefinalclosingdateoftheoffer,theGroup’seffectiveinterestinUSIincreasedfrom18.9%to30.6%andUSI’seffectiveinterestinWinsoris79.3%.

Asat30June2007,thecarryingvalueofquotedequityshares ishigherthanthemarketvalue.Thedirectorsconsiderthecarryingvalueofinvestmentinassociatedcompaniesappropriateandtheshortfallistemporary.

DetailsoftheGroup’sassociatedcompaniesarelistedinNote37tothefinancialstatements.


86

20. investments in Joint venture companies Group 2007 2006 $’000 $’000

Beginningoffinancialyear 89,870 91,605Acquisitionofjointventurecompany 300 –Shareofjointventurecompanies’capitalreserves – 17Shareofjointventurecompanies’netprofits 41,905 26,128Dividendsreceived – (3,000)Jointventurecompanyofasubsidiarycompanyacquired 2,425 –Reclassifiedtosubsidiarycompanyduetoacquisitionofcontrollinginterest (5,413) (8,062)Write-backofprovisionforloantojointventurecompanies(Note18) (14,925) (17,406)Currencytranslationdifferences (368) 385Others (2,668) 203


ThefollowingamountsrepresenttheGroup’sshareoftheassetsandliabilitiesandincomeandexpensesofthejointventurecompaniesandareincludedintheconsolidatedbalancesheetandincomestatementusingequityaccounting.

Group 2007 2006 $’000 $’000

Assets 470,556 480,019Liabilities (359,430) (390,149)Revenue 254,224 152,119Netprofit 41,905 26,128

TheGroup’sshareofthecapitalcommitmentsofthejointventurecompanieswereasfollows:

Group 2007 2006 $’000 $’000

Contractedbutnotprovidedfor 267,546 55,345

DetailsoftheGroup’sjointventurecompaniesarelistedinNote37tothefinancialstatements.

21. investments in subsiDiarY companies Company 2007 2006 $’000 $’000

Beginningoffinancialyear 253,392 132,366Reclassifiedfrominvestmentsinassociatedcompaniesduetoacquisitionofcontrollinginterest – 121,026Impairment (12,092) –


DetailsoftheGroup’ssubsidiarycompaniesarelistedinNote37tothefinancialstatements.TheeffectoftheacquisitionanddisposalofsubsidiarycompaniesontheGroup’sfinancialpositionisdisclosedinNote11.


87

22. investment properties Group Company 2007 2006 2007 2006 $’000 $’000 $’000 $’000

Beginningoffinancialyear,aspreviouslyreported 417,970 527,103 – –EffectofadoptingFRS40(Note3) (35,826) – 82,000 –

Asrestated 382,144 527,103 82,000 –Acquisitionofsubsidiarycompany – 120,694 – –Disposals – (230,000) – –Additions 1,360 60 – –Impairmentlosstakentoincomestatement – (3,361) – –Fairvaluegainstakento:–incomestatement 189,033 – – ––equity – 4,427 – –Currencytranslationdifferences 1,682 (953) – –

Endoffinancialyear 574,219 417,970 82,000 –

Theinvestmentpropertiesareasfollows: Lettable Group’s area/ interestin landarea propertyLocation Description Tenure (Sqm) (%)

singapore3KillineyRoad 10-storey 99-year 15,989 100(WinslandHouseI) commercialbuilding leasefrom1983

163PenangRoad 8-storey 99-year 7,292 100(WinslandHouseII) commercialbuilding leasefrom1994

165PenangRoad Conservation 99-year 584 100(WinslandHouseII) house leasefrom1994

167PenangRoad 9-storeyserviced 99-year 6,030 100(LansonPlaceWinslandResidences) apartments leasefrom1994

malaysiaLot263,Section89A, 132units Freehold 23,873 54.1TownofKualaLumpur condominium(LansonPlaceKondominiumNo.8)

UnitG2 Shopunit Freehold 205 100HolidayPlaza,JohorBahru

Lot360Mukim17, Vacantland Freehold 2,282 54.1BatuFerringhi,Penang

Lot343Mukim3,Lot1822, Vacantland Freehold 27,275 54.11823and1425Mukim4,13600ProvinceWellesleyCentral,Penang

Lot4868Mukim14, Vacantland Freehold 483 54.1DaerahSeberangPeraiTengah,Penang

Lot247,Section43, Vacantland Freehold 6,084 54.1TownofKualaLumpur


88

22. investment properties (continued)

Investmentpropertiesarevaluedon30June2007onthebasisofopenmarketvaluesbyindependentprofessionallyqualifiedvaluers,resultinginfairvaluegainsof$182.2million,netofminorityinterests,whichwastakentotheGroup’sincomestatementinaccordancewithFRS40.Intheprecedingfinancialyear,priortoadoptionofFRS40,therevaluationsurplusof$5.2million,netofminorityinterests,wastakentotheGroup’sassetrevaluationreserve[Note29(c)].

Investmentpropertieswithatotalvaluationof$529.6million(2006:$384.6million)aremortgagedtobankstosecurelongtermbankingfacilitiesgrantedtothesubsidiarycompanies(Note25).

Investmentpropertiesareleasedtothirdpartiesunderoperatingleases(Note31).

23. propertY, plant anD equipment

Freehold Leasehold landand landand Motor Office Furniture buildings buildings vehicles equipment andfittings Total $’000 $’000 $’000 $’000 $’000 $’000

group

2007Cost or valuationBeginningoffinancialyear,aspreviouslyreportedCost – 557 2,928 10,809 23,987 38,281Valuation 93,225 11,112 – – – 104,337 93,225 11,669 2,928 10,809 23,987 142,618EffectofadoptingFRS40(Note3) 35,826 – – – – 35,826

Asrestated 129,051 11,669 2,928 10,809 23,987 178,444Acquisitionofsubsidiarycompany – 16,617 112 50 – 16,779Transfertopropertiesheldforsale – (2,555) – – – (2,555)Additions 501 908 1,106 1,544 8,196 12,255Disposals – (84) (705) (808) (259) (1,856)Write–off – – – (11) – (11)Revaluationsurplus/(deficit) 1,415 (337) – (18) – 1,060Currencytranslationdifferences 370 638 73 345 312 1,738

Endoffinancialyear 131,337 26,856 3,514 11,911 32,236 205,854

Representing:Cost – 608 3,514 11,911 32,236 48,269Valuation 131,337 26,248 – – – 157,585

131,337 26,856 3,514 11,911 32,236 205,854Accumulated depreciationBeginningoffinancialyear 1,156 (756) 917 7,442 16,531 25,290Depreciationcharge 837 1,152 800 1,293 4,249 8,331Disposals – (84) (662) (771) – (1,517)Write–off – – – (11) – (11)Adjustmentonrevaluation – (12) – – – (12)Currencytranslationdifferences (48) 145 44 212 275 628

Endoffinancialyear 1,945 445 1,099 8,165 21,055 32,709

net book value end of financial year 129,392 26,411 2,415 3,746 11,181 173,145


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23. propertY, plant anD equipment (continued)

Freehold Leasehold landand landand Motor Office Furniture buildings buildings vehicles equipment andfittings Total $’000 $’000 $’000 $’000 $’000 $’000

group

2006Cost or valuationBeginningoffinancialyearCost – – 2,433 9,274 20,848 32,555Valuation 89,360 1,507 – – – 90,867 89,360 1,507 2,433 9,274 20,848 123,422Acquisitionofsubsidiarycompany 5,174 13,270 856 2,829 1,829 23,958Reclassifications – (29) – – 29 –Additions – 2 536 1,101 4,191 5,830Disposals (1,182) (238) (856) (2,030) (2,712) (7,018)Write–off – – – (16) – (16)Revaluationsurplus/(deficit) 68 (2,735) – (26) – (2,693)Currencytranslationdifferences (195) (108) (41) (323) (198) (865)

Endoffinancialyear 93,225 11,669 2,928 10,809 23,987 142,618

Representing:Cost – 557 2,928 10,809 23,987 38,281Valuation 93,225 11,112 – – – 104,337

93,225 11,669 2,928 10,809 23,987 142,618Accumulated depreciationBeginningoffinancialyear 485 250 1,100 6,326 15,572 23,733Depreciationcharge 516 220 575 1,023 2,735 5,069Disposals (328) (135) (725) (1,503) (1,941) (4,632)Impairment 627 313 2 1,884 344 3,170Write–off – – – (16) – (16)Adjustmentonrevaluation (133) (1,389) – – – (1,522)Currencytranslationdifferences (11) (15) (35) (272) (179) (512)

Endoffinancialyear 1,156 (756) 917 7,442 16,531 25,290

net book value end of financial year 92,069 12,425 2,011 3,367 7,456 117,328


90


Freehold landand Motor Office Furniture buildings vehicles equipment andfittings Total $’000 $’000 $’000 $’000 $’000

company

2007Cost or valuationBeginningoffinancialyear,aspreviouslyreportedCost – 1,355 2,128 5,240 8,723Valuation 88,680 – – – 88,680 88,680 1,355 2,128 5,240 97,403EffectofadoptingFRS40(Note3) (82,000) – – – (82,000)

Asrestated 6,680 1,355 2,128 5,240 15,403Additions – – 441 1,366 1,807Disposals – – (17) (1) (18)Write–off – (245) (3) – (248)Revaluationsurplus 1,415 – – – 1,415

Endoffinancialyear 8,095 1,110 2,549 6,605 18,359

Representing:Cost – 1,110 2,549 6,605 10,264Valuation 8,095 – – – 8,095

8,095 1,110 2,549 6,605 18,359Accumulated depreciationBeginningoffinancialyear 943 748 430 4,749 6,870Depreciationcharge 472 181 77 87 817Disposals – (245) (16) – (261)Write–off – – (2) – (2)

Endoffinancialyear 1,415 684 489 4,836 7,424

net book value end of financial year 6,680 426 2,060 1,769 10,935

2006Cost or valuationBeginningoffinancialyearCost – 1,355 2,012 5,198 8,565Valuation 89,360 – – – 89,360 89,360 1,355 2,012 5,198 97,925Additions – – 157 42 199Disposals (436) – (25) – (461)Write–off – – (16) – (16)Revaluationdeficit (244) – – – (244)

Endoffinancialyear 88,680 1,355 2,128 5,240 97,403

Representing:Cost – 1,355 2,128 5,240 8,723Valuation 88,680 – – – 88,680

88,680 1,355 2,128 5,240 97,403Accumulated depreciationBeginningoffinancialyear 485 533 423 4,666 6,107Depreciationcharge 483 215 47 83 828Disposals (25) – (25) – (50)Write–off – – (15) – (15)

Endoffinancialyear 943 748 430 4,749 6,870

net book value end of financial year 87,737 607 1,698 491 90,533


91


ThefreeholdandleaseholdlandandbuildingsoftheGroupandCompanywerevaluedonthebasisofopenmarketvaluebyindependentprofessionallyqualifiedvaluerson30June2007.

Ifthefreeholdandleaseholdlandandbuildingsstatedatvaluationhadbeenincludedinthefinancialstatementsatcostlessdepreciation,thenetwrittendownamountwouldhavebeenasfollows:

Group Company 2007 2006 2007 2006 $’000 $’000 $’000 $’000

Freeholdlandandbuildings 41,022 11,514 795 8,561Leaseholdbuildings 8,179 8,640 – –

49,201 20,154 795 8,561

Thepropertiesincludedinfreeholdandleaseholdlandandbuildingsareasfollows:

Lettablearea/ landareaLocation Description Tenure (Sqm)

singaporeLots2694and5163Mukim22, 10-storeywarehouseandoffice Freehold 19,321107TampinesRoad buildinganda5-storeycanteen

Lot94-59Mukim22, 9-storeywarehouseand Freehold 9,840105TampinesRoad officebuilding

Lots94-34,94-72,2248,2250and 16unitsofapartmentsin Freehold 1,6652278Mukim22,19ValleyRoad a4-storeybuilding

malaysia3rdfloor,BinovaIndustrialCentre, Factory,officeand 99-yearlease 1,201Jalan2/57BSegambutBawah, warehouse expiring207751200KualaLumpur

166-A,RifleRangeRoad, Industriallandandbuildings 60-yearlease 14,98311400Penang expiring2033

523,AyerPutehRoad, Industriallandandbuildings Freehold 6,156BalikPulau,11000Penang

57,ParitBuntarIndustrialComplex, Industriallandandbuildings 60-yearlease 15,67534200ParitBuntar,Perak expiring2039

12A-06and02-02, 2unitsofcondominium Freehold 21872,ScotlandRoad,10450Penang housing

Lot53,JalanCetak, Industriallandandbuildings 99-yearlease 4,474TasekIndustrialEstate, expiring207231400Ipoh,Perak

Lot583,MukimKotaLama, Industriallandandbuildings 60-yearlease 10,51733000KualaKangsar,Perak expiring2050

Plot832,JejawiIndustrialEstate, Industriallandandbuildings 60-yearlease 11,63502600Arau,Kangar,Perlis expiring2045

Plot1522,JejawiIndustrialEstate, Industriallandandbuildings 60-yearlease 56202600Arau,Kangar,Perlis expiring2051

Unitno.2.04-2.06,Level2KOMTAR, Shoplots 99-yearlease 342PenangRoad,Penang expiring2083


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Thepropertiesincludedinfreeholdandleaseholdlandandbuildingsareasfollows:(continued)

Lettablearea/ landareaLocation Description Tenure (Sqm)

malaysia (continued)Lot262,Section89A, 221unitsofservicedapartments Freehold 17,656TownofKualaLumpur ina20-storeybuilding(LansonPlaceAmbassadorRowResidences)

Lots837-839,870,871, Vacantland Freehold 34,1511493and1617Mukim6,13600ProvinceWellesleyCentral,Penang

the people’s republic of chinaUnits7Aand18A,JinHuaTower, 2apartmentunits 70-yearlease 632SuzhouGardenVilla,38ShiShanRoad, from1992Suzhou,Jiangsu

At30June2007,certainproperty,plantandequipmentwithnetbookvalueamountingto$36.1million(2006:$0.5million)weresecuredunderadebenturedeedtoabankforlongtermbankingfacilitiesgrantedtosubsidiarycompanies(Note25).

24. traDe anD other paYables Group Company 2007 2006 2007 2006 $’000 $’000 $’000 $’000

Duetosubsidiarycompanies–non-trade[Note24(i)] – – 159,805 209,861

Duetoassociatedcompanies–non-trade[Note24(ii)] 1,789 2,034 12 12

Duetojointventurecompanies–non-trade[Note24(iii)] 7 6 – –

Duetorelatedcompanies–non-trade[Note24(iii)] 415 128 – –

Accruedprojectcosts 35,732 32,931 – –Accruedoperatingexpenses 42,967 26,570 11,917 2,247Tradecreditors 32,917 29,187 – –Othercreditors 24,178 12,473 3,624 316Tenancydeposits 2,844 1,457 152 80

138,638 102,618 15,693 2,643

total trade and other payables 140,849 104,786 175,510 212,516

(i) Non-tradeamountsduetosubsidiarycompaniesareunsecuredandarerepayableondemand.Includedintheamountsduetosubsidiarycompaniesarefixedinterestratepayablesof$35.9million(2006:$34.4million)andfloatinginterestratepayablesof$24.9million(2006:$26.0million).

(ii) Non-tradeamountsduetoassociatedcompaniesareunsecured,interest-freeandarerepayableondemand.

(iii) Non-tradeamountsduetojointventurecompaniesandrelatedcompaniesareunsecured,interestfreeandrepayableondemand.

Thecarryingamountsoftradeandotherpayablesapproximatedtheirfairvalues.


93

24. traDe anD other paYables (continued)

Theweightedaverageeffectiveinterestratesatthebalancesheetdatewereasfollows:

Company 2007 2006 sgD SGD % %

Duetosubsidiarycompanies 3.1 3.5

Tradeandotherpayablesandothernon–currentliabilities(Note27)weredenominatedinthefollowingcurrencies:

Group Company 2007 2006 2007 2006 $’000 $’000 $’000 $’000

SingaporeDollar 275,471 320,787 109,659 248,187MalaysianRinggit 22,093 18,652 – –UnitedStatesDollar 2,529 5,731 95,744 2,558HongKongDollar 7,693 7,602 25,144 38,800ChineseRenminbi 13,110 – – –Others 4,633 3,709 – –

325,529 356,481 230,547 289,545

25. borroWings Group Company 2007 2006 2007 2006 $’000 $’000 $’000 $’000

CurrentborrowingsSecuredtermloan 75,698 161,000 – –Securedlongtermbankloans(currentportion) – 6,672 – –Unsecuredbankloans 114,657 28,696 – –Unsecuredtransferableloanfacility – 50,000 – 50,000Unsecuredlongtermbankloans(currentportion) 142 – – –

190,497 246,368 – 50,000

Non–currentborrowingsSecuredbankloans 509,387 408,184 – –Unsecuredmediumtermnotesdue2010 50,000 50,000 50,000 50,000Unsecuredmediumtermnotesdue2011 100,000 100,000 100,000 100,000Unsecuredtransferableloanfacility 125,000 125,000 125,000 125,000Unsecuredbankloans 79,968 178,163 – –

864,355 861,347 275,000 275,000

total borrowings 1,054,852 1,107,715 275,000 325,000

Thecarryingamountsoftotalborrowingsapproximatedtheirfairvalues.


94

25. borroWings (continued)

(a) Maturityofborrowings

Thecurrentborrowingshaveanaveragematurityof4months(2006:5months)fromtheendofthefinancialyear.Thenon-currentborrowingshadthefollowingmaturity:

Group Company 2007 2006 2007 2006 $’000 $’000 $’000 $’000

Betweentwoandfiveyears 759,795 856,638 175,000 275,000Laterthanfiveyears 104,560 4,709 100,000 –

864,355 861,347 275,000 275,000

(b) Currencyrisk

Thecarryingamountsoftotalborrowingsweredenominatedinthefollowingcurrencies:

Group Company 2007 2006 2007 2006 $’000 $’000 $’000 $’000

SingaporeDollar 996,262 1,040,549 275,000 325,000MalaysianRinggit 55,027 60,412 – –UnitedStatesDollar 444 6,754 – –HongKongDollar 3,119 – – –

1,054,852 1,107,715 275,000 325,000

(c) Interestraterisks

Theweightedaverageeffectiveinterestratesoftotalborrowingsatthebalancesheetdatewereasfollows:

Group 2007 2006 sgD rm usD hKD SGD RM USD % % % % % % %

CurrentborrowingsSecuredtermloan 3.8 5.2 – – 4.4 – –Securedlongtermbankloans(currentportion) – – – – 3.8 4.8 –Unsecuredbankloans 5.1 4.6 5.6 – – 4.4 6.1Unsecuredtransferableloanfacility – – – – 5.5 – –Unsecuredlongtermbankloans(currentportion) – – – 5.2 – – –

Non–currentborrowingsSecuredbankloans 3.6 5.2 – – 4.6 4.7 –Unsecuredmediumtermnotesdue2010 4.1 – – – 4.5 – –Unsecuredmediumtermnotesdue2011 5.0 – – – 5.0 – –Unsecuredtransferableloanfacility 4.2 – – – 5.4 – –Unsecuredbankloans 4.9 – – 5.2 6.2 – –

Company 2007 2006 SGD % %

CurrentborrowingsUnsecuredtransferableloanfacility – 5.5

Non–currentborrowingsUnsecuredmediumtermnotesdue2010 4.1 4.5Unsecuredmediumtermnotesdue2011 5.0 5.0Unsecuredtransferableloanfacility 4.2 5.4


95


(c) Interestraterisks(continued)

Theearlierofthecontractualrepricingormaturitydatesoftheborrowingsweresetoutbelow:

Group

Variablerates Fixedrates Notlater Notlater Between than than 2and5 1year 1year years Total $’000 $’000 $’000 $’000

2007CurrentborrowingsSecuredtermloan 6,698 69,000 – 75,698Unsecuredbankloans 114,657 – – 114,657Unsecuredlongtermbankloans(currentportion) 142 – – 142

121,497 69,000 – 190,497

Non–currentborrowingsSecuredbankloans 509,387 – – 509,387Unsecuredmediumtermnotesdue2010 15,000 – 35,000 50,000Unsecuredmediumtermnotesdue2011 – – 100,000 100,000Unsecuredtransferableloanfacility 125,000 – – 125,000Unsecuredbankloans 79,968 – – 79,968

729,355 – 135,000 864,355

Effectofinterestrateswaps(Note12) (424,760) 102,308 322,452 –

total borrowings 426,092 171,308 457,452 1,054,852

2006CurrentborrowingsSecuredtermloan 161,000 – – 161,000Securedlongtermbankloans(currentportion) 6,672 – – 6,672Unsecuredbankloans 28,696 – – 28,696Unsecuredtransferableloanfacility 50,000 – – 50,000

246,368 – – 246,368

Non–currentborrowingsSecuredbankloans 339,184 – 69,000 408,184Unsecuredmediumtermnotesdue2010 15,000 – 35,000 50,000Unsecuredmediumtermnotesdue2011 – – 100,000 100,000Unsecuredtransferableloanfacility 125,000 – – 125,000Unsecuredbankloans 178,163 – – 178,163

657,347 – 204,000 861,347

Effectofinterestrateswaps(Note12) (487,889) – 487,889 –

total borrowings 415,826 – 691,889 1,107,715


96


(c) Interestraterisks(continued)

Theearlierofthecontractualrepricingormaturitydatesoftheborrowingsweresetoutbelow:

Company 2007 2006 Variablerates Fixedrates Variablerates Fixedrates Notlater Between Notlater Between than 2and5 than 2and5 1year years Total 1year years Total $’000 $’000 $’000 $’000 $’000 $’000

CurrentborrowingsUnsecuredtransferableloanfacility – – – 50,000 – 50,000

Non–currentborrowingsUnsecuredmediumtermnotesdue2010 15,000 35,000 50,000 15,000 35,000 50,000Unsecuredmediumtermnotesdue2011 – 100,000 100,000 – 100,000 100,000Unsecuredtransferableloanfacility 125,000 – 125,000 125,000 – 125,000

140,000 135,000 275,000 140,000 135,000 275,000

Effectofinterestrateswaps(Note12) (140,000) 140,000 – (190,000) 190,000 –

total borrowings – 275,000 275,000 – 325,000 325,000

(d) Securitygranted

Thesecuredborrowingsaresecuredonthefollowingassets: Group Note 2007 2006 $’000 $’000

Developmentproperties 15 602,269 773,809Investmentproperties 22 529,556 384,600Property,plantandequipment 23 36,100 492

1,167,925 1,158,901

26. DiviDenDsordinary dividends paid in respect of the preceding financial year

GroupandCompany 2007 2006 $’000 $’000

Firstandfinaldividendof3cents(2006:3cents)persharelesstaxof20%(2006:20%) 17,250 17,225Specialdividendof3cents(2006:Nil)persharelesstaxof20%(2006:Nil) 17,249 –

34,499 17,225

Thedirectorshaverecommendedafirstandfinalcashdividendinrespectofthefinancialyearended30June2007of3centspersharelesstaxof18%,specialcashdividendof5centspersharelesstaxof18%andspecialrightsdividendof25centspersharelesstaxof18%amountingto$194.7million.Thesefinancialstatementsdonotreflecttheseproposeddividends,whichwillbeaccountedforintheshareholders’equityasanappropriationofretainedearningsinthefinancialyearending30June2008.

On29August2007,theCompanyannouncedaproposedrenounceablenon-underwrittenrightsissueofupto72,179,600newordinarysharesinthecapitaloftheCompanyatanissuepriceof$2.05foreachrightsshare,onthebasisofonerightsshareforeverytenexistingordinarysharesoftheCompanyandtheavailabilityofanoptiontoelecttousethenetspecialrightsdividendtosubscribefortherightsshares.

The proposed first and final dividend and special dividend in respect of the financial year ended 30 June 2006 has beenaccountedforintheshareholders’equityasanappropriationofretainedearningsinthecurrentfinancialyear.


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27. other non-current liabilities Group Company 2007 2006 2007 2006 $’000 $’000 $’000 $’000

Tenancydeposits 3,414 2,664 40 105Loansfromminorityshareholders[Note27(i)] 171,671 239,366 – –Loansfromsubsidiarycompanies[Note27(ii)] – – 46,875 70,251Others 9,595 9,665 8,122 6,673

184,680 251,695 55,037 77,029

(i) Loansfromminorityshareholdersareunsecuredandarenotexpectedtoberepayablewithinthenext12monthsfromthebalancesheetdate.Includedintheloansfromminorityshareholdersarefixedinterestrateamountsof$98.2million(2006: $100.3 million) which bear a weighted average effective interest rate of 3.7% (2006: 3.7%) per annum at thebalancesheetdate.

(ii) Theloansfromsubsidiarycompaniesareunsecured,interest–freeandarenotrepayablewithinthenext12monthsfromthebalancesheetdate.

(iii) Thecarryingamountsofothernon–currentliabilitiesapproximatedtheirfairvalues.Thecurrencydenominationofothernon-currentliabilitiesaredisclosedinNote24,togetherwithtradeandotherpayables.

28. share capital GroupandCompany Issuedsharecapital Numberofshares Amount ’000 $’000

2007Beginningoffinancialyear 718,228 687,193Issueofsharesunderoptions 1,193 1,123


Numberofshares Amount Authorised Issued Authorised Issued Capital Total share share share share Share redemption share capital capital capital capital premium reserve capital ’000 ’000 $’000 $’000 $’000 $’000 $’000

2006Beginningoffinancialyear 1,350,000 716,110 251,786 179,027 501,600 4,713 685,340Issueofsharesunderoptions – 2,118 – 771 1,082 – 1,853EffectofCompanies(Amendment)Act2005 (1,350,000) – (251,786) 507,395 (502,682) (4,713) –

Endoffinancialyear – 718,228 – 687,193 – – 687,193

All issuedsharesarefullypaid.Duringthefinancialyear,theCompanyissued1,193,000(2006:2,118,000)sharesupontheexerciseofemployeeshareoptionsattheexercisepriceofbetween$0.653and$1.43(2006:$0.653and$1.379)pershare.Thenewlyissuedsharesrankparipassuinallrespectswiththepreviouslyissuedshares.


98

28. share capital (continued)

(a) TheWingTaiHoldingsLimited(2001)ShareOptionScheme(the“2001Scheme”)

The2001SchemewasapprovedandadoptedbythemembersoftheCompanyattheExtraordinaryGeneralMeetingheldon31August2001.

On5September2006,pursuanttothe2001Scheme,theCompanygrantedoptionstoqualifyingemployeestopurchase1,905,000ordinarysharesoftheCompanyattheexercisepriceof$1.81pershare.Theseoptionscanbeexercisedonlyaftertwelvemonthsfromthedateofgrantandnotlaterthan10yearsfromsuchdate.

Movementsinthenumberofunissuedordinarysharesunderoptionsduringthefinancialyearandtheirexercisepriceswereasfollows:

Beginningof Number Number Number Number Endof Exercise financial ofoptions ofoptions ofoptions ofoptions financial priceDateofgrant year granted exercised forfeited expired year ($) Expirydate

20072001Scheme02.11.2001 286,000 – 91,000 – – 195,000 0.678 01.11.201105.11.2002 276,500 – 61,500 – – 215,000 0.653 04.11.201228.11.2003 870,500 – 390,500 10,000 – 470,000 0.745 27.11.201319.11.2004 1,281,000 – 403,000 93,000 – 785,000 0.934 18.11.201430.09.2005 1,575,000 – 247,000 144,000 – 1,184,000 1.430 29.09.201505.09.2006 – 1,905,000 – 205,000 – 1,700,000 1.810 04.09.2016

total 4,289,000 1,905,000 1,193,000 452,000 – 4,549,000

20061991Scheme31.10.2000 1,005,000 – 508,000 15,000 482,000 – 1.379 30.09.2005

2001Scheme02.11.2001 741,000 – 455,000 – – 286,000 0.678 01.11.201105.11.2002 914,500 – 628,000 10,000 – 276,500 0.653 04.11.201228.11.2003 1,264,000 – 305,500 88,000 – 870,500 0.745 27.11.201319.11.2004 1,720,000 – 221,500 217,500 – 1,281,000 0.934 18.11.201430.09.2005 – 1,805,000 – 230,000 – 1,575,000 1.430 29.09.2015

total 5,644,500 1,805,000 2,118,000 560,500 482,000 4,289,000

Outoftheoutstandingoptionson4,549,000shares(2006:4,289,000),optionson1,357,000shares(2006:1,239,500)areexercisable.Optionsexercisedin2007resultedin1,193,000shares(2006:2,118,000)beingissuedatanaveragepriceof$0.94(2006:$0.88)each.

Thefairvalueofoptionsgrantedon5September2006(2006:30September2005)determinedusingtheBinomialvaluationmodel,was$1,272,000(2006:$1,397,000).Thesignificantinputsintothemodelweresharepriceatgrantdateof$1.88(2006:$1.51),exercisepriceasshownabove,standarddeviationofexpectedsharepricereturnsof37.9%(2006:41.5%),optionlifeasshownaboveandannualrisk–freeinterestrateof3.3%(2006:2.5%).Thevolatilitymeasuredatthestandarddeviationofexpectedsharepricereturnsisbasedonstatisticalanalysisofdailysharepricesoverthelastninetydays.

(b) TheDNPHoldingsBerhad(“DNP”)Employees’ShareOptionScheme

DetailsoftheshareoptionsgrantedbyDNP,asubsidiarycompanyoftheGoup,aredisclosedintheannualreportofDNPforthefinancialperiodended30June2007.


99

29. other reserves Group Company 2007 2006 2007 2006 $’000 $’000 $’000 $’000

Shareoptionreserve 2,660 1,422 2,512 1,419Cashflowhedgereserve (10,063) 2,162 (10,019) 1,874Assetrevaluationreserve 81,627 118,529 5,885 80,489Shareofcapitalreservesofassociatedandjointventurecompanies 28,320 98,493 – –Fairvaluereserve 11,556 – – –Currencytranslationreserve (26,616) (15,732) – –

87,484 204,874 (1,622) 83,782

(a) ShareoptionreserveBeginningoffinancialyear 1,422 466 1,419 466Employeeshareoptionscheme:–Valueofemployeeservices(Notes7and28) 1,381 956 1,093 953Minorityinterests (143) – – –


(b) CashflowhedgereserveBeginningoffinancialyear 2,162 (5,922) 1,874 (3,485)Fairvalue(losses)/gainsoncashflowhedges (12,225) 8,084 (11,893) 5,359

Endofthefinancialyear (10,063) 2,162 (10,019) 1,874

(c) AssetrevaluationreserveBeginningoffinancialyear,aspreviouslyreported 118,529 104,441 80,489 80,733EffectofadoptingFRS40(Note3) (38,377) – (76,018) –Asrestated 80,152 104,441 4,471 80,733Surplusonrevaluationof:–investmentproperties(Note22) – 4,427 – ––property,plantandequipment(Note23) 1,313 187 1,414 –Deferredincometaxcredited/(charged)toequity[Note9(b)] 203 (82) – –Revaluationdeficit/(surplus)realisedandtransferredtoincomestatementupondisposalofproperties – 8,910 – (244)Minorityinterests (41) 646 – –


(d) Shareofcapitalreservesofassociatedand jointventurecompanies

Beginningoffinancialyear,aspreviouslyreported 98,493 87,402 – –EffectofadoptingFRS40(Note3) (89,114) – – –Asrestated 9,379 87,402 – –Shareofcapitalreservesofassociatedandjointventurecompanies 19,782 15,875 – –Minorityinterests (841) (4,784) – –

Endofthefinancialyear 28,320 98,493 – –

Capitalreservesofassociatedandjointventurecompaniesarisefromcurrencytranslationandotherreservesandtheyarenotdistributable.


100

29. other reserves (continued) Group Company 2007 2006 2007 2006 $’000 $’000 $’000 $’000

(e) FairvaluereserveBeginningoffinancialyear – – – –Fairvaluegainsonavailable–for–salefinancialassets 23,019 – – –Minorityinterests (11,463) – – –

Endoffinancialyear 11,556 – – –

(f) CurrencytranslationreserveBeginningoffinancialyear (15,732) (3,086) – –Translationoffinancialstatementsofforeignsubsidiary,associatedandjointventurecompanies (3,252) (7,621) – –Translationofforeigncurrencydenominatedloanswhicharequasi–equityinnature (4,461) (6,031) – –Minorityinterests (3,171) 1,006 – –

Endoffinancialyear (26,616) (15,732) – –

total other reserves 87,484 204,874 (1,622) 83,782

30. retaineD earnings

(a) RetainedearningsoftheGroupandtheCompanyaredistributableexceptforretainedearningsofassociatedandjointventurecompaniesamountingto$81.8million(2006:$86.7million)whichareincludedintheGroup’sretainedearnings.

(b) MovementsinretainedearningsfortheCompanywereasfollows: Company 2007 2006 $’000 $’000

Beginningoffinancialyear,aspreviouslyreported 184,375 166,463EffectofadoptingFRS40(Note3) 76,018 –

Asrestated 260,393 166,463Totalprofit 13,796 35,137Dividendspaid(Note26) (34,499) (17,225)


(c) MovementinretainedearningsfortheGroupisshownintheConsolidatedStatementofChangesinEquity.


101

31. commitments

(a) Capitalcommitments

Capitalexpenditurescontractedforatthebalancesheetdatebutnotrecognisedinthefinancialstatements,excludingthoserelatingtoinvestmentsinjointventurecompanies(Note20),areanalysedasfollows:

Group 2007 2006 $’000 $’000

Capitalanddevelopmentexpenditurenotprovidedforinthefinancialstatements:

Commitmentsinrespectofcontractsplaced 131,128 38,139

Authorisedbutnotcontractedfor 7,417 7,754

(b) Operatingleasecommitments-whereagroupcompanyisalessee

TheGroupleasesvariousretailunitsundernon-cancellableoperatingleaseagreements.Theleaseshavevaryingterms,escalationclausesandrenewalrights.TheleaseexpenditurechargedtotheincomestatementduringthefinancialyearisdisclosedinNote6.

Thefutureaggregateminimumleasepayableundernon-cancellableoperatingleasescontractedforatthebalancesheetdatebutnotrecognisedasliabilities,areanalysedasfollows:

Group 2007 2006 $’000 $’000

Notlaterthanoneyear 22,803 28,368Betweentwoandfiveyears 24,173 26,123

46,976 54,491

(c) Operatingleasecommitments-whereagroupcompanyisalessor

Thefutureminimumleasereceivableundernon-cancellableoperatingleasescontractedforatthebalancesheetdatebutnotrecognisedasreceivables,areanalysedasfollows:

Group Company 2007 2006 2007 2006 $’000 $’000 $’000 $’000

Notlaterthanoneyear 15,292 14,752 558 533Betweentwoandfiveyears 18,504 12,340 449 337

33,796 27,092 1,007 870


102

32. contingent liabilities

Details and estimates of maximum amounts of contingent liabilities, excluding those relating to investments in associatedcompanies(Note19)andinvestmentsinjointventurecompanies(Note20),wereasfollows:

Group Company 2007 2006 2007 2006 $’000 $’000 $’000 $’000

Guaranteesissuedtobanksforcreditfacilitiesgrantedto:–subsidiarycompanies – – 229,054 235,242–associatedcompanies 8,280 8,280 8,280 8,280–jointventurecompanies 2,040 62,452 2,040 62,452

10,320 70,732 239,374 305,974

TheCompanyhasgivenguaranteesforallliabilitiesofasubsidiarycompanyincurredunderatenderbondfacilityamountingto$15.0million(2006:$15.0million)grantedbyabanktothesubsidiarycompany.

33. financial risK management

Financialriskfactors

The Group is exposed to foreign currency, interest rate, credit and liquidity risks arising from its diversified businesses.TheGroup’sriskmanagementapproachseekstominimisepotentialadverseeffects fromtheseexposuresonthefinancialperformanceoftheGroup.Afteridentifyingandevaluatingitsexposuretothefinancialrisks,theGroupestablishespoliciestomonitorandmanagetheserisksinaccordancewithitsriskmanagementphilosophy.

(a) Pricerisk/Currencyrisk

TheGroupholdslong-termoverseasinvestmentsanditsnetassetsareexposedtocurrencytranslationrisk.TheGroupusesnaturalhedgingopportunities,likeborrowinginthecurrencyofthecountryinwhichtheseinvestmentsarelocatedwheneverpracticable.Theexchangedifferencesarisingfromsuchtranslationsarecapturedunderthecurrencytranslationreserve.Thesetranslationdifferencesarereviewedandmonitoredonaregularbasis.

(b) Cashflowandfairvalueinterestraterisk

TheGroupisexposedtointerestrateriskthroughtheimpactofratechangesoninterestbearingassetsandliabilities.TheGroupmanagesitsinterestrateexposurebymaintainingaprudentmixoffixedandfloatingrateborrowings.TheGroupalsouseshedginginstrumentssuchasinterestrateswapstominimiseitsexposuretointerestratevolatility(seeNote34fordetails).

(c) Creditrisk

TheGrouphasnosignificantconcentrationofcreditriskwithanysingleentity.TheGrouphaspoliciesinplacetoensurethatsalesofproductsandservicesaremadeonlytocustomerswithacceptablecreditstanding.Derivativecounterpartiesandcashtransactionsarelimitedtohighcreditqualityfinancialinstitutions.TheGrouphaspoliciesthatlimittheamountofcreditexposuretoanyfinancialinstitution.

(d) Liquidityrisk

TheGroupactivelymanagesitsdebtmaturityprofile,operatingcashflowsandtheavailabilityoffundingsoastoensurethat all refinancing, repayment and funding needs are met. The Group adopts prudent liquidity risk management bymaintainingsufficientcashandtheavailabilityoffundingthroughanadequateamountofcommittedcreditfacilities.TheGroupconstantlyraisescommittedfundingfrombothcapitalmarketsandfinancialinstitutionsandprudentlybalancesitsportfoliowithshorttermfundingsoastoachieveoverallcosteffectiveness.


103

34. financial instruments

Inordertomanagetherisksarisingfromfluctuationsincurrencyexchangeratesandinterestrates,theGroupandtheCompanymakeuseofthefollowingderivativefinancialinstruments:

(a) Interestrateswaps

TheGroupandtheCompanyhaveenteredintointerestrateswapcontractsthatentitlethemtoreceiveinterestatfloatingratesonnotionalprincipalamountsandobligethemtopayinterestatfixedratesonthesameamounts.TheinterestrateswapsallowtheGroupandtheCompanytoraiselong-termborrowingsatfloatingratesandswapthemintofixedratesthatarelowerthanthoseavailableiftheyborrowedatfixedratesdirectly.Undertheinterestrateswaps,theGroupandtheCompanyagreewithotherpartiestoexchange,atspecifiedintervals(mainlyquarterly),thedifferencebetweenthefixedandfloatingrateinterestamountscalculatedbyreferencetotheagreednotionalprincipalamounts.At30June2007,thefixedinterestratesvaryfrom2.1%to3.3%(2006:2.1%to3.3%)perannumandthefloatingratesarelinkedtoswapratesquotedbyvariousbanksandagencies.

Theremainingtermsandnotionalprincipalamountsoftheoutstandinginterestrateswapcontractsatthebalancesheetdatewereasfollows:

Group Company 2007 2006 2007 2006 $’000 $’000 $’000 $’000

Notlaterthanoneyear 102,308 – 102,308 –Betweentwoandfiveyears 322,452 487,889 222,452 374,760

424,760 487,889 324,760 374,760

(b) Forwardforeignexchangecontracts

Forwardforeignexchangecontractsareenteredintotomanageexposuretofluctuationsinforeigncurrencyexchangerateonspecifictransactions.Thesecontractsdonotqualifyforhedgeaccounting.

Thesettlementdatesonopenforwardcontractswereasfollows: Group 2007 2006 $’000 $’000

Notlaterthanoneyear 14,923 30,101Betweentwoandfiveyears 13,373 –

28,296 30,101

ThecommitmentsinrespectoftheforwardforeignexchangecontractsenteredintobytheGroupwereasfollows: Group 2007 2006 $’000 $’000

PayableinlocalcurrencyForwardcontractstoreceiveforeigncurrency 28,296 30,101


104

35. relateD partY transactions

Inadditiontotherelatedpartyinformationdisclosedelsewhereinthefinancialstatements,thefollowingsignificanttransactionsbetweentheGroupandrelatedpartiestookplaceduringthefinancialyearattermsagreedbetweentheparties:

(a) Salesandpurchasesofgoodsandservices Group 2007 2006 $’000 $’000

Commissionincomereceivedfrom:–associatedcompanies 28 84–jointventurecompanies 809 1,059

Managementandservicefeesreceivedfrom:–associatedcompanies 240 2,590–jointventurecompanies 3,285 900

Managementfeespaidtoassociatedcompany 571 353

Reimbursementofadministrativecostsandservicefeestoassociatedcompanies – 615

Reimbursementofadministrativecostsandservicefeesfromassociatedcompanies 686 557

Financial,secretarialandadministrativefeesreceivedfrom:–associatedcompanies 30 30–jointventurecompanies 177 156

(b) Keymanagementpersonnelcompensation

Keymanagementpersonnelcompensationisasfollows: Group 2007 2006 $’000 $’000

Salariesandothershorttermemployeebenefits 10,314 7,619Shareoptionsgranted 329 90

10,643 7,709

IncludedintheaboveiscompensationtodirectorsoftheCompanywhichamountedto$6.3million(2006:$4.4million).


105

36. segment information

(a) Primaryreportingformat-businesssegments

At30June2007,theGroupisorganisedintothreemainbusinesssegments–developmentproperties,investmentpropertiesandretail.OtheroperationsoftheGroupcomprisemainlygarmentmanufacturingandinvestmentholding,neitherofwhichconstitutesaseparatelyreportablesegment.

Development Investment properties properties Retail Others Group

2007 $’000 $’000 $’000 $’000 $’000

Revenue 757,602 29,938 139,341 54,753 981,634

Segmentresult 219,363 206,626 8,825 (25,176) 409,638Interestincome 12,218 421,856

Financecosts (32,057)

Shareofprofitofassociatedand jointventurecompanies 41,905 8,117 2,549 57,536 110,107

Profitbeforeincometax 499,906

Incometaxexpense (58,155)

Totalprofit 441,751

Segmentassets 1,329,049 608,245 52,835 381,402 2,371,531Investmentsinassociatedcompanies – 10,994 7,736 412,856 431,586Investmentsinjointventurecompanies 111,082 – – 44 111,126Duefromassociatedandjointventurecompanies 209,631 636 1,046 95 211,408 1,649,762 619,875 61,617 794,397 3,125,651

Unallocatedassets 7,534

Consolidatedtotalassets 3,133,185

Segmentliabilities 219,688 9,396 30,853 75,655 335,592Borrowings 408,200 192,394 – 454,258 1,054,852 627,888 201,790 30,853 529,913 1,390,444Unallocatedliabilities 78,559

Consolidatedtotalliabilities 1,469,003

Capitalexpenditure 711 451 5,619 5,474 12,255Depreciation 804 256 3,696 3,575 8,331


106

36. segment information (continued)

(a) Primaryreportingformat–businesssegments(continued)

Development Investment properties properties Retail Others Group

2006 $’000 $’000 $’000 $’000 $’000

Revenue 733,925 27,124 89,062 39,147 889,258

Segmentresult 113,630 9,072 1,533 (22,155) 102,080Interestincome 8,040 110,120

Financecosts (40,297)

Shareofprofitofassociatedand jointventurecompanies 26,016 87 2,734 58,245 87,082

Profitbeforeincometax 156,905

Incometaxexpense (21,163)

Totalprofit 135,742

Segmentassets 1,263,775 457,319 37,256 307,612 2,065,962Investmentsinassociatedcompanies 1,979 2,863 7,437 359,470 371,749Investmentsinjointventurecompanies 89,845 – – 25 89,870Duefromassociatedandjointventurecompanies 198,244 636 786 1,125 200,791 1,553,843 460,818 45,479 668,232 2,728,372

Unallocatedassets 17,234

Consolidatedtotalassets 2,745,606

Segmentliabilities 290,496 9,060 13,334 43,948 356,838Borrowings 391,418 195,863 899 519,535 1,107,715 681,914 204,923 14,233 563,483 1,464,553Unallocatedliabilities 19,176

Consolidatedtotalliabilities 1,483,729

Capitalexpenditure 9 348 4,504 969 5,830Depreciation 32 400 2,799 1,838 5,069

(b) Secondaryreportingformat–geographicalsegments

TheGroup’sthreemainbusinesssegmentsoperateinthreemaingeographicalareas–Singapore,ThePeople’sRepublicofChina(PRC)/HongKongSARandMalaysia.

Revenue Totalassets Capitalexpenditure 2007 2006 2007 2006 2007 2006 $’000 $’000 $’000 $’000 $’000 $’000

Singapore 826,154 831,241 2,229,040 2,022,170 8,540 4,406PRC/HongKongSAR 19,242 – 504,366 389,827 711 –Malaysia 101,718 31,321 384,614 317,731 3,004 1,424Othercountries 34,520 26,696 15,165 15,878 – –

981,634 889,258 3,133,185 2,745,606 12,255 5,830


107

37. companies in the group

Information relating to thecompanies in theGroup isgivenbelow,with theexceptionof inactiveanddormantcompanies.Singapore-incorporatedsubsidiarycompaniesandassociatedcompanies inwhich theGrouphasmanagementcontrolareauditedbyPricewaterhouseCoopersSingapore,unlessotherwiseindicated.

Equityheld Countryof bytheGroup incorporation/ 2007 2006 placeofbusiness Principalactivities % %

(a) WingTaiHoldingsLimited Singapore Investmentholding n/a n/a

(b) Subsidiarycompanies

DNPHoldingsBerhad ! Malaysia-Quotedonthe Manufacturingandtradingof BursaMalaysiaSecurities garments,propertydevelopment Berhad andinvestmentholding 54.1 50.2

AngelWing(M)SdnBhd *,! Malaysia Propertydevelopment 54.1 50.2

BraveDragonLtd *,# BritishVirginIslands Investmentholding 89.4 89.4 (BVI)/HongKongSAR

CrossbrookGroupLtd # BVI/HongKongSAR Investmentholding 100 100

DNPClothingSdnBhd *,! Malaysia Retailingofgarments 54.1 50.2

DNPGarment *,! Malaysia Manufactureoftextilegarments 54.1 50.2 ManufacturingSdnBhd

DNPLandSdnBhd *,! Malaysia Propertydevelopment 54.1 50.2

DNPProperty *,! Malaysia Projectmanagementand 54.1 50.2 ManagementSdnBhd maintenanceofproperties

Dragon&Phoenix *,! Malaysia Manufactureoftextilegarments 54.1 50.2 SerbaPakaianSdnBhd

EvermoreInvestmentPteLtd * Singapore Propertyinvestmentanddevelopment 85 85

FoxFashionApparel(S) * Singapore Retailingofgarments 100 100PteLtd

GrandEasternRealty& *,! Malaysia Propertydevelopment 54.1 50.2DevelopmentSdnBhd

Harta-AmanSdnBhd *,! Malaysia Propertydevelopment 54.1 50.2

HartamajuSdnBhd *,! Malaysia Propertyinvestment 54.1 50.2

Jiaxin(Suzhou)Property *,@ ThePeople’sRepublicof Propertydevelopment,investment 75 35DevelopmentCo.,Ltd China(PRC) andmanagement

NesterInvestmentsLimited *,# BVI/HongKongSAR Investmentholding 100 100

NianSheng *,! BVI/HongKongSAR Investmentholding 54.1 50.2InvestmentsLimited

P.T.WindasDevelopment *,@ Indonesia Propertyinvestmentanddevelopment 58.5 57.6

RichdealInvestmentPteLtd * Singapore Propertyinvestmentanddevelopment 66.7 66.7

RondallEnterprises *,@ HongKongSAR Investmentholding 100 100Limited

Sedi-IntanSdnBhd *,! Malaysia Tradingingarments 54.1 50.2

SediperakSdnBhd *,! Malaysia Manufactureoftextilegarments 54.1 50.2

n/a:notapplicable


108

37. companies in the group (continued)


(b) Subsidiarycompanies (continued)

SenihartaSdnBhd *,! Malaysia Propertyinvestment 54.1 50.2

SriRampaianSdnBhd *,! Malaysia Manufactureoftextilegarments 54.1 50.2

StarpuriDevelopment *,! Malaysia Propertydevelopment 54.1 50.2Sdn.Bhd.

SuzhouProperty *,> Singapore Propertydevelopmentand 75 35DevelopmentPteLtd investmentholding

TanahnagaSdnBhd *,! Malaysia Propertydevelopment 54.1 50.2

TanakoSdnBhd *,! Malaysia Manufactureoftextilegarments 54.1 50.2

WelwynInvestment * Singapore Propertyinvestmentand 90 90PteLtd development

Winace * Singapore Investmentholding 100 100InvestmentPteLtd

Winbliss * Singapore Propertyinvestmentand 100 100InvestmentPteLtd development

Wincharm * Singapore Investmentholding 100 100InvestmentPteLtd

Windeal * Singapore/PRC PropertyInvestment 100 100InvestmentPteLtd

Wingain * Singapore Propertyinvestment 66.7 66.7InvestmentPteLtd

Wingold * Singapore Investmentholding 100 100InvestmentPteLtd

Wingrace * Singapore Propertyinvestmentand 100 100InvestmentPteLtd development

Wingrove * Singapore Propertyinvestmentand 75 75InvestmentPteLtd development

Winhome *,< Singapore Propertyinvestmentand 60 60InvestmentPteLtd development

Winmax * Singapore Propertyinvestment 100 100InvestmentPteLtd

Winnervest * Singapore Propertyinvestmentand 100 100InvestmentPteLtd development

Winnorth * Singapore Propertyinvestmentand 100 100InvestmentPteLtd development

Winquest * Singapore Propertyinvestmentand 60 60InvestmentPteLtd development

Winrose * Singapore Propertyinvestmentand 100 –InvestmentPteLtd development

Winshine * Singapore Propertyinvestment 100 100InvestmentPteLtd


109



(b) Subsidiarycompanies (continued)

Winsland * Singapore Propertyinvestment 100 100InvestmentPteLtd

Winswift * Singapore Investmentholding 54.1 50.2InvestmentPteLtd

Wintrust * Singapore Propertyinvestment,development 100 100InvestmentPteLtd andinvestmentholding

Winwill * Singapore Investmentholding 60 60InvestmentPteLtd

Winwise * Singapore Propertyinvestmentand 60 60InvestmentPteLtd development

Winworth * Singapore Propertyinvestmentand 85 85InvestmentPteLtd development

WingMei(M)SdnBhd *,! Malaysia Propertyinvestment 54.1 50.2

WingTai(China) * Singapore Investmentholding 100 –InvestmentPteLtd

WingTaiClothingPteLtd * Singapore Retailingofgarments 100 100

WingTaiInvestment& Singapore Managementandadministration 100 100DevelopmentPteLtd ofprojectsandinvestmentholding

WingTaiInvestment * Singapore Managementofinvestment 100 100ManagementPteLtd properties

WingTaiLandPteLtd Singapore Investmentholding 100 100

WingTaiProperty * Singapore Projectmanagementand 100 100ManagementPteLtd maintenanceofproperties

WingTaiRetailPteLtd Singapore Managementofretailoperations 100 100

Yoshinoya(S)PteLtd * Singapore Restaurantoperator 100 100

(c) Associatedcompanies

USIHoldingsLimited *,% Bermuda-Quoted Manufacturingandtradingof 30.6 18.9 ontheHongKong garments,propertydevelopment, StockExchange/ managementandinvestmentholding HongKongSAR

WinsorProperties *,@ CaymanIslands- Propertyinvestmentand – 27.7HoldingsLimited QuotedontheHongKong development,warehousingand StockExchange/ investmentholding HongKongSAR

BurlingtonSquare *,& Singapore Propertytrading 50 50PropertiesPteLtd

BurlingtonSquare *,& Singapore Propertyinvestment 50 50InvestmentPteLtd

G2000Apparel(S)PteLtd * Singapore Retailingofgarments 45 45


110



(d) Jointventurecompanies

ChoiceHomesBetaPteLtd * Singapore Propertyinvestmentanddevelopment 30 –

OrwinDevelopmentLimited * Singapore Propertyinvestmentanddevelopment 40 40

SummervaleProperties *,& Singapore Propertyinvestmentanddevelopment 50 –PteLtd

WinfameInvestmentPteLtd * Singapore Propertyinvestmentanddevelopment 50 50

WingemInvestmentPteLtd * Singapore Propertyinvestmentanddevelopment 45 45

WinpeakInvestmentPteLtd * Singapore Propertyinvestmentanddevelopment 45 45

WinwaveInvestmentPteLtd * Singapore Propertyinvestmentanddevelopment 50 50

* HeldbyGroupcompanies.

! AuditedbyErnstandYoung,Malaysia.

# Thesecompaniesarenotrequiredtobeauditedbylawinthecountryofincorporation,buttheunauditedfinancialstatementsarereviewedbyPricewaterhouseCoopersSingaporeaspartoftheauditoftheconsolidatedfinancialstatements.

> SuzhouPropertyDevelopmentPteLtdwasajointventurecompanyintheprecedingfinancialyear.PleaseseeNote11fordetails.

< Theentityis60%heldbyWinwillInvestmentPteLtdandisclassifiedasasubsidiarycompanyasitiscontrolledbytheGroup.

% Audited by PricewaterhouseCoopers, Hong Kong. USI Holdings Limited (“USI”) is accounted for as an associated company in theprecedingfinancialyearalthoughtheGroupholdslessthan20%interestinUSIastheGrouphasboardrepresentationinUSIandhastheabilitytoinfluenceitsfinancialdecisions.

@ AuditedbyotherPricewaterhouseCoopersfirmsoutsideSingapore.

& AuditedbyKPMG,Singapore.

^ AuditedbySuzhouLixinCertifiedPublicAccountantsCo.,Ltd

38. neW accounting stanDarDs anD frs interpretations

Certainnewstandards,amendmentsandinterpretationstoexistingstandardshavebeenpublishedandtheyaremandatoryfortheaccountingperiodsbeginningonorafter1January2007orlaterperiodswhichtheGrouphasnotearlyadopted.TheGroup’sassessmentoftheimpactofadoptingthosestandards,amendmentsandinterpretationsthatarerelevanttotheGroupissetoutbelow:

FRS107Financial Instruments: Disclosures,andacomplementaryAmendmentstoFRS1Presentation of Financial Statements– Capital Disclosures.

FRS107introducesnewdisclosurestoimprovetheinformationaboutfinancialinstruments.Itrequiresthedisclosureofqualitativeandquantitativeinformationaboutexposuretorisksarisingfromfinancialinstruments,includingminimumdisclosuresaboutcreditrisk,liquidityriskandmarketrisk(includingsensitivityanalysistomarketrisk).ItreplacesthedisclosurerequirementsinFRS32Financial Instruments: Disclosure and Presentation.

TheamendmenttoFRS1introducesdisclosuresaboutthelevelofanentity’scapitalandhowitmanagescapital.TheGrouphasassessedtheimpactofFRS107andtheamendmenttoFRS1andconcludedthatthemainadditionaldisclosureswillbethesensitivityanalysistomarketriskandthecapitaldisclosuresrequiredbytheamendmentofFRS1.

39. authorisation of financial statements

These financial statements were authorised for issue in accordance with a resolution of the Board of Directors on 28September2007.


111

NOTiCE Of aNNual gENEral mEETiNg

Wing tai holDings limiteD(CompanyRegistrationNo.196300239D)(IncorporatedintheRepublicofSingapore)

NOTICEISHEREBYGIVENthatthe43rdAnnualGeneralMeetingoftheCompanywillbeheldatTheBallroom,Level3,RafflesHotel,1BeachRoad,Singapore189673onTuesday,30October2007at10.30a.m.totransactthefollowingbusiness:

as orDinarY business1. ToreceiveandadopttheAuditedAccountsforthefinancialyearended30June2007andtheReportsofthe

DirectorsandAuditorsthereon.

2. TodeclareaFirstandFinalDividendof3centspershare,aSpecialDividendof5centspershareandaSpecialRightsDividendof25centspershare,less18%Singaporeincometaxforthefinancialyearended30June2007.

3. ToapproveDirectors’feesof$321,258/-forthefinancialyearended30June2007(2006:$260,500/-).

4. Tore-electthefollowingDirectorswhoareretiringinaccordancewiththeCompany’sArticlesofAssociation:

(i) MrLeeKimWah (RetiringunderArticle107)

(ii) MrLohSooEng (RetiringunderArticle107)

(iii)MrPaulTongHonTo (RetiringunderArticle117)

Mr Paul Tong Hon To upon re-election as a Director of the Company, remains as a member of the AuditCommittee.MrTongwillbeconsideredindependentforthepurposesofRule704(8)oftheListingManualoftheSingaporeExchangeSecuritiesTradingLimited.

5. Tore-appointPricewaterhouseCoopersasauditorsoftheCompanyandtoauthorisetheDirectorstofixtheirremuneration.

as special business6. Tore-appointthefollowingDirectorstoholdofficeuntilthenextAnnualGeneralMeetingpursuanttoSection

153(6)oftheCompaniesAct(Chapter50):

(a) MrPhuaBahLee

(b) MrLeeHanYang

MrPhuaBahLee,aNon-ExecutiveDirector,will,uponre-appointmentasDirectoroftheCompany,remainasChairmanoftheAuditCommitteeandwillbeconsideredindependentforthepurposesofRule704(8)oftheListingManualoftheSingaporeExchangeSecuritiesTradingLimited.

(SeeExplanatoryNote1)

MrLeeHanYang,aNon-ExecutiveDirector,will,uponre-appointmentasDirectoroftheCompany,remainasamemberoftheAuditCommitteeandwillbeconsideredindependentforthepurposesofRule704(8)oftheListingManualoftheSingaporeExchangeSecuritiesTradingLimited.


Resolution1

Resolution2

Resolution3

Resolution4

Resolution5

Resolution6

Resolution7

Resolution8

Resolution9

112

7. Toconsider,andifthoughtfit,topassthefollowingOrdinaryResolutionswithorwithoutmodifications:

(a) “ThatpursuanttoSection161oftheCompaniesAct (Chapter50),andthe listingrulesoftheSingaporeExchangeSecuritiesTradingLimited,authoritybeandisherebygiventotheDirectorsoftheCompanytoissuesharesandconvertiblesecuritiesinthecapitaloftheCompany(whetherbywayofrights,bonusorotherwise)atanytimetosuchpersonsanduponsuchtermsandconditionsandforsuchpurposesastheDirectorsmayintheirabsolutediscretiondeemfit,providedthat:

(i) theaggregatenumberofsharesandconvertiblesecuritiestobeissuedpursuanttothisResolutiondoesnotexceed50%oftheCompany’sissuedsharecapital,ofwhichtheaggregatenumberofsharesandconvertiblesecuritiestobeissuedotherthanonaproratabasistoshareholdersoftheCompanydoesnotexceed20%of theCompany’s issuedsharecapital;and for thepurposeof thisResolution, theissuedsharecapitalshallbetheCompany’sissuedsharecapitalatthetimethisResolutionispassed(afteradjusting fornewsharesarising from theconversionofconvertiblesecuritiesor shareoptionsonissueatthetimethisResolutionispassedandanysubsequentconsolidationorsubdivisionoftheCompany’sshares),and

(ii) unlessrevokedorvariedbytheCompanyingeneralmeeting,theauthorityconferredbythisResolutionshallcontinueinforceuntiltheconclusionofthenextAnnualGeneralMeetingoftheCompanyorthedatebywhichthenextAnnualGeneralMeetingoftheCompanyisrequiredbylawtobeheld,whicheveristheearlier.”


(b)“ThatpursuanttoSection161oftheCompaniesAct(Chapter50),approvalbeandisherebygiventotheDirectorsoftheCompanytoexercisefullpowersoftheCompanytoissueandallotsharesintheCompanypursuanttotheexerciseofoptionsgrantedinconnectionwithorpursuanttothetermsandconditionsoftheWingTaiHoldingsLimited(2001)ShareOptionSchemeapprovedbyShareholdersoftheCompanyingeneralmeetingon31August2001andasmaybeamendedfromtimetotime(the“2001Scheme”)and,pursuant to the2001Scheme, tomakeandgrantoffers, agreements andoptionswhichwouldormayrequiresharestobeissuedandallotted,whetherduringthecontinuanceofthisauthorityorthereafter,uponsuchtermsandconditionsastheDirectorsmayintheirabsolutediscretiondeemfit.”


8. TotransactanyotherbusinessthatmaybetransactedatanAnnualGeneralMeetingoftheCompany.

ByOrderoftheBoard

GabrielleTanCompanySecretary

Singapore15October2007

Resolution10

Resolution11


113

notes:

1. AShareholderoftheCompanyentitledtoattendandvoteattheMeetingisentitledtoappointnotmorethantwoproxiestoattendandvoteinhisstead.AproxyneednotbeaShareholderoftheCompany.

2. AShareholderoftheCompanywhichisacorporationisentitledtoappointitsauthorisedrepresentativeorproxytovoteonitsbehalf.Theinstrumentappointingtheproxymustbeundersealorthehandofanofficerorattorneydulyauthorised.

3. TheinstrumentappointingaproxymustbedepositedattheregisteredofficeoftheCompanyat3KillineyRoad,#10-01WinslandHouseI,Singapore239519,notlessthan48hoursbeforethetimefixedforholdingtheMeeting.

explanatory notes:

1. TheproposedResolution8above,ifpassed,willauthoriseMrPhuaBahLee,whoisovertheageof70,tocontinueinofficeasaDirectoroftheCompanyuntilthenextAnnualGeneralMeetingoftheCompany.

2. TheproposedResolution9above,ifpassed,willauthoriseMrLeeHanYang,whoisovertheageof70,tocontinueinofficeasaDirectoroftheCompanyuntilthenextAnnualGeneralMeetingoftheCompany.

3. TheproposedResolution10above,ifpassed,willempowertheDirectorsoftheCompany,fromthedateoftheaboveAnnualGeneralMeetinguntilthenextAnnualGeneralMeeting,toissuesharesandconvertiblesecuritiesintheCompany.TheaggregatenumberofsharesandconvertiblesecuritieswhichtheDirectorsmayissueunderthisResolutionshallnotexceed50%oftheissuedsharecapitaloftheCompany,ofwhichtheaggregatenumberofsharesandconvertiblesecuritiestobeissuedotherthanonapro-ratabasistoexistingshareholdersshallnotexceed20%oftheissuedsharecapitaloftheCompany.

ThepercentageofissuedsharecapitalisbasedontheCompany’sissuedsharecapitalatthetimethisproposedResolutionispassed,afteradjustingfor(a)newsharesarisingfromtheconversionofconvertiblesecuritiesorshareoptionsonissueatthetimethisproposedResolutionispassed;and(b)anysubsequentconsolidationorsubdivisionofshares.

4. TheproposedResolution11above,ifpassed,willempowertheDirectorsoftheCompany,fromthedateoftheaboveAnnualGeneralMeetinguntiltheconclusionofthenextAnnualGeneralMeeting,toissuesharesinconnectionwiththe2001Schemeandtograntoffers,agreementsandoptionswhichwouldrequiresharestobeissued.ThisauthorityisinadditiontothegeneralauthoritytoissuesharesandconvertiblesecuritiessoughtunderResolution10.


114

SharEhOldiNg STaTiSTiCS asat18September2007

share capital

Issuedandfullypaid-upcapital : S$689,223,847dividedinto720,478,602ordinarysharesVotingrights :1votepershare

Distribution of shareholDers

SizeofShareholdings No.ofShareholders % No.ofShares %

1to999 179 2.06 50,504 0.011,000to10,000 7,579 87.37 26,868,731 3.7310,001to1,000,000 896 10.33 29,273,990 4.061,000,001andabove 21 0.24 664,285,377 92.20

Total 8,675 100.00 720,478,602 100.00

tWentY largest shareholDers

Name No.ofShares %

1 WingSunDevelopmentPrivateLimited 202,032,264 28.04

2 DBSNomineesPteLtd 113,420,889 15.74

3 WinlynInvestmentPteLtd 66,106,760 9.18

4 HSBC(Singapore)NomineesPteLtd 62,576,873 8.69

5 CitibankNomineesSingaporePteLtd 45,070,221 6.26

6 DBSNServicesPteLtd 41,385,919 5.74

7 RafflesNomineesPteLtd 36,407,343 5.05

8 UnitedOverseasBankNomineesPteLtd 18,140,453 2.52

9 NuChanSingPteLtd 16,666,666 2.31

10 MorganStanleyAsia(Singapore)SecuritiesPteLtd 12,817,134 1.78

11 DBSVickersSecurities(Singapore)PteLtd 11,764,999 1.63

12 EmpireGateHoldingsLimited 11,017,793 1.53

13 UOBKayHianPteLtd 5,858,833 0.81

14 OCBCNomineesSingaporePteLtd 5,152,654 0.72

15 MerrillLynch(Singapore)PteLtd 4,412,078 0.61

16 OverseaChineseBankNomineesPteLtd 3,391,833 0.47

17 WinwayInvestmentPteLtd 3,208,333 0.45

18 ChengKar-YunnKaren 1,300,000 0.18

19 ChengKar-YeeCarol 1,295,666 0.18

20 WeljoyLimited 1,166,666 0.16

Total 663,193,377 92.05

percentage of shareholDing helD in the hanDs of public

Asat18September2007,approximately54.89%oftheissuedordinarysharesoftheCompanyareheldbythepublic.Rule723oftheListingManualoftheSingaporeExchangeSecuritiesTradingLimitedhasaccordinglybeencompliedwith.

115

SharEhOldiNg STaTiSTiCS asat18September2007

substantial shareholDers as shoWn in the register of substantial shareholDers

Name Interest(No.ofOrdinaryShares)

ChengWaiKeung 282,365,1501

EdmundChengWaiWing 282,381,1502

ChristopherChengWaiChee 279,279,3173

EdwardChengWaiSun 279,156,8174

DeutscheBankInternationalTrustCo.(Cayman)Limited 279,156,8174

DeutscheBankInternationalTrustCo.(Jersey)Limited 279,156,8174

WingSunDevelopmentPrivateLimited 202,032,264

WingTaiAsiaHoldingsLimited 213,050,0575

WinlynInvestmentPteLtd 66,106,760

TerebeneHoldingsInc 66,106,7606

HSBCHoldingplc 37,870,1137

MetroChampionLimited 66,106,7608

1 Includes282,365,150sharesbeneficiallyownedbyWingSunDevelopmentPrivateLimited,WinlynInvestmentPteLtd,WinwayInvestmentPteLtdandEmpireGateHoldingsLimited.

2 Includes282,365,150sharesbeneficiallyownedbyWingSunDevelopmentPrivateLimited,WinlynInvestmentPteLtd,WinwayInvestmentPteLtdandEmpireGateHoldingsLimitedand16,000sharesbeneficiallyheldbyMrsKitHengWong-Cheng.

3 Includes279,156,817sharesbeneficiallyownedbyWingSunDevelopmentPrivateLimited,Winlyn InvestmentPteLtdandEmpireGateHoldingsLimitedand122,500sharesownedbyanominee,DBSVickersSecurities(S)PteLtd.

4 Includes279,156,817sharesbeneficiallyownedbyWingSunDevelopmentPrivateLimited,Winlyn InvestmentPteLtdandEmpireGateHoldingsLimited.

5 Includes213,050,057sharesbeneficiallyownedbyWingSunDevelopmentPrivateLimitedandEmpireGateHoldingsLimited.

6 SharesbeneficiallyownedbyWinlynInvestmentPteLtdinwhichTerebeneHoldingsIncisdeemedtohaveaninterest.

7 Includes30,295,113sharesregisteredinthenameofTheHongkongandShanghaiBankingCorporationLimited,Singaporeoritsnominee(s),2,305,000sharesregisteredinthenameofDBSBankLtd.,Singaporeoritsnominee(s)and5,270,000sharesregisteredinthenameofUnitedOverseasBankLimited,Singaporeoritsnominee(s).

8 SharesbeneficiallyownedbyWinlynInvestmentsPteLtdinwhichMetroChampionLimitedisdeemedtohaveaninterest.

116

I/We,

of

beingaShareholder(s)ofWingTaiHoldingsLimited(the“Company”),herebyappoint:

Name Address NRIC/PassportNumber ProportionofShareholdings No.ofShares %

and/or(deleteasappropriate)

asmy/ourproxies,tovoteforme/usonmy/ourbehalfand,ifnecessary,todemandapollatthe43rdAnnualGeneralMeetingoftheCompanytobeheldonTuesday,30October2007at10.30a.m.atTheBallroom,Level3,RafflesHotel,1BeachRoad,Singapore189673andatanyadjournmentthereof.

I/Wehaveindicatedwithan“X”intheappropriateboxbelowhowI/wewishmy/ourproxiestovote.fnospecificdirectionastovotingisgiven,my/ourproxiesmayvoteorabstainathis/herdiscretion.

Resolution Resolutionsrelatingto: Tobeused Tobeused onashowofhands intheeventofapoll

For Against Numberof Numberof VotesFor VotesAgainst

1. AdoptionofDirectors’ReportandAccounts

2. DeclarationofFirstandFinalDividend,SpecialDividendandSpecialRightsDividend

3. ApprovalofDirectors’fees

4. Re-electionofMrLeeKimWah

5. Re-electionofMrLohSooEng

6. Re-electionofMrPaulTongHonTo

7. Re-appointmentofPricewaterhouseCoopersasauditorsandtoauthorisetheDirectorstofixtheirremuneration

8. Re-appointmentofMrPhuaBahLee

9. Re-appointmentofMrLeeHanYang

10. AuthoritytoissuesharesandconvertiblesecuritiespursuanttoSection161oftheCompaniesAct(Chapter50)

11. AuthoritytoofferandgrantoptionsandtoissuesharesinaccordancewiththeprovisionsofWingTaiHoldingsLimited(2001)ShareOptionScheme.

Datedthis dayof 2007.

Signature(s)ofShareholder(s)/CommonSealofCorporateShareholder

IMPORTANT:PLEASEREADNOTESOVERLEAF


Numberofsharesheld

prOxy fOrm

IMPORTANT

1. ForinvestorswhohaveusedtheirCPFmoniestobuysharesofWingTaiHoldingsLimited,thisReport issenttothemattherequestoftheirCPFApprovedNomineesandissentsolelyFORINFORMATIONONLY.

2. ThisproxyformisnotvalidforusebyCPFinvestorsandshallbeineffectiveforallintentsandpurposesifusedorpurportedtobeusedbythem.

3. CPFinvestorswhowishtovoteshouldcontacttheirCPFApprovedNominees.

117

prOxy fOrm


notes:

1. Pleaseinsertthetotalnumberofsharesheldbyyou.IfyouhavesharesenteredagainstyournameintheDepositoryRegister(asdefinedinSection130AoftheCompaniesAct,Chapter50ofSingapore),youshouldinsertthatnumberofshares.IfyouhavesharesregisteredinyournameintheRegisterofMembers,youshouldinsertthatnumberofshares.IfyouhavesharesenteredagainstyournameintheDepositoryRegisterandsharesregistered inyournameintheRegisterofMembers,youshouldinserttheaggregatenumberofsharesenteredagainstyournameintheDepositoryRegisterandregisteredinyournameintheRegisterofMembers.Ifnonumberisinserted,theinstrumentappointingaproxyorproxiesshallbedeemedtorelatetoallthesharesheldbyyou.

2. AmemberoftheCompanyentitledtoattendandvoteatameetingoftheCompanyisentitledtoappointnotmorethantwoproxiestoattendandvoteinsteadofhim.AproxyneednotbeamemberoftheCompany.

3. Whereamemberappointsmorethanoneproxy,andifhedoesnotspecifytheproportionofhisholdingtoberepresentedbyeachproxy,thefirstnamedproxyshallbedeemedtorepresent100percent.ofhisholdingandthesecondnamedproxyshallbedeemedtobeanalternatetothefirstnamed.

4. TheinstrumentappointingaproxyorproxiesmustbedepositedattheCompany’sregisteredofficeat3KillineyRoad,#10-01WinslandHouseI,Singapore239519notlessthan48hoursbeforethetimesetforholdingtheMeeting.ThesendingofaProxyFormbyamemberdoesnotprecludehimfromattendingandvotinginpersonattheMeetingifhefindsthatheisabletodoso.Insuchevent,therelevantProxyFormswillbedeemedtoberevoked.

5. Theinstrumentappointingaproxyorproxiesmustbeunderthehandoftheappointororhisattorneydulyauthorisedinwriting.Wheretheinstrumentappointingaproxyorproxiesisexecutedbyacorporation,itmustbeexecutedeitherunderitssealorunderthehandofadirectororanofficerorattorneydulyauthorised.

6. AcorporationwhichisamembermayauthorisebyresolutionofitsdirectorsorothergoverningbodysuchpersonasitthinksfittoactasitsrepresentativeattheMeeting,inaccordancewithSection179oftheCompaniesAct,Chapter50ofSingapore.

7. TheCompanyshallbeentitledtorejecttheinstrumentappointingaproxyorproxiesifitisincomplete,improperlycompleted,illegibleorwherethetrueintentionsoftheappointorarenotascertainablefromtheinstructionsoftheappointorspecifiedontheinstrumentappointingaproxyorproxies.Inaddition,inthecaseofsharesenteredintheDepositoryRegister,theCompanymayrejectanyinstrumentappointingaproxyorproxiesdepositedifthemember,beingtheappointor,isnotshowntohavesharesenteredagainsthisnameintheDepositoryRegisterasat48hoursbeforethetimeappointedforholdingtheMeeting,ascertifiedbyTheCentralDepository(Pte)LimitedtotheCompany.

118

15October2007

DearShareholder

ThisisacopyoftheChairman’sStatementandSummaryFinancialStatements(“SummaryFinancialReport”or“SR”)ofWingTaiHoldingsLimitedforthefinancialyearended30June2007.TheSummaryFinancialReportcontainsareviewoftheGroupfortheyearended30June2007.ItalsocontainsasummaryoftheauditedfinancialstatementsoftheCompanyandtheGroup.WewillbesendingyouacopyoftheSummaryFinancialReportforsolongasyouareashareholderofWingTaiHoldingsLimited,unlessyouindicateotherwise.

ThefullfinancialstatementoftheCompanyandtheGroupfortheyearended30June2007aresetoutinaseparatereportcalledAnnualReport(“AR”).ThisreportisavailabletoallregisteredshareholdersofWingTaiHoldingsLimitedatnocostuponrequest.

WewillneedtoknowwhichshareholderswishordonotwishtoreceivetheSRandtheAR.Therefore,wewouldappreciateifyoucouldcompletethisrequestslipandreturnittoWingTaiHoldingsLimitedby25October2007ifyouwanttoreceiveacopyoftheAR.Byfailingtorespond,wewilltakeitthatyoudonotwishtoreceivecopiesoftheARforthefinancialyearended30June2007andforsolongasyouareashareholder.However,youmayregisterorchangeyourrequestforfuturefinancialyears.

YoursfaithfullyForandonbehalfofWingTaiHoldingsLimited

GabrielleTanCompany Secretary

REQUESTSLIPto: Wing tai holdings limited

N.B. Please tick only one box. Incomplete forms will not be processed.

Pleasesendme/usacopyoftheARinadditiontotheSRforthefinancialyearended30June2007andforsolongasI/weam/areashareholderofWingTaiHoldingsLimited.

I/WedonotwishtoreceivetheSRortheARforsolongasI/weam/areashareholderofWingTaiHoldingsLimited.I/WewilldownloadtheAR/SRfromyourwebsite.

Name(s)ofShareholder(s):

NRIC/Passportnumber(s): CDPSecuritiesAccountNo.*:

Address:

Postcode:

Signature: Date:

*ThisisonlyapplicableifyoursharesinWingTaiHoldingsLimitedareregisteredwithTheCentralDepository(Pte)Limited.

rEquEST fOrm


119

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permit no 05214

C/OTHEREGISTRAR

WingTaiHoldingsLimited(TricorBarbinderShareRegistrationServices)

8CrossStreet#11-00PWCBuilding

Singapore048424

Documents

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